FTX Distribution Triggers Sell Pressure in Bitcoin Market

FTX's fourth round of distributing bankruptcy recoveries is set to inject $2.2 billion into the cryptocurrency market, coinciding with Bitcoin's attempt to establish itself above $70,000.

The distribution, which will begin on March 31 and end on April 3, will see eligible creditors receive funds via BitGo, Kraken, or Payoneer within 1-3 business days. This marks the largest FTX distribution since the second round in May 2025, which totaled over $5 billion.

With approximately 60% of Bitcoin's supply currently in profit, the market is expected to face significant sell pressure as creditors cash out their recoveries. Short-term holders are already realizing profits at a rate of $18.4 million per hour near $74,000, which could exacerbate this trend.

However, some analysts believe that the distribution could also provide a boost to the market, particularly if it helps to alleviate some of the selling pressure caused by short-term holders.