To receive the Morning Note in your inbox, subscribe here: https://stormrake.substack.com/
The fallen giant of 2022, FTX, is set to begin repayments to its customer base on the 18th, starting with those who held less than $50,000. The total repayments are expected to reach $16 billion. Customers will be reimbursed based on their account balances as of November 2022.
As we all know, Bitcoin is now sitting just shy of $100k. However, FTX will start repaying 98% of users at Bitcoin’s November 2022 valuation of $20k. This means that if you had 1 BTC worth $20k at the time, you will only receive $20k in cash, not 1 BTC. Given Bitcoin’s nearly 500% price increase, this leaves investors feeling more than frustrated.
Ethereum holders, on the other hand, have fared better. The repayments for ETH are priced in at $2,500, meaning they will recover nearly their full value, as ETH has only risen around 10% since November 2022. The stark contrast between Bitcoin and Ethereum’s repayment values has sparked heated discussions in the crypto community.
What does this mean for the current crypto market?
What does this mean for the current crypto market?
Despite the scale of the repayments, $16 billion will not be injected into the market all at once. The initial repayment tranche is estimated at $1.2 billion, with further disbursements continuing next month.
While the repayments are made in USD, many recipients are already engaged in the crypto ecosystem, making it likely that a portion of these funds will flow back into Bitcoin, Ethereum, and other digital assets. This could provide fresh liquidity and act as a bullish catalyst—potentially giving Bitcoin the push it needs to break out above $100k.
Additionally, the inflows could ignite a more focused altcoin season, with capital rotating into undervalued assets, making this a key period to watch for traders and investors alike.
Stormrake Spotlight: Ondo Finance (ONDO) ($1.32)
Stormrake Spotlight: Ondo Finance (ONDO) ($1.32)
Ondo remains in consolidation at the top of its accumulation zone, awaiting its next catalyst. Currently, neither bulls nor bears are in control, as price action has been sideways since the start of the month.
For bulls to regain dominance, ONDO needs to reclaim $1.48, which would trigger a bullish cross of the 21 EMA and 55 EMA. A decisive move above this level could set the stage for a strong breakout.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin is currently hovering between the key levels of $95.7k and $100k, with no clear direction yet. Bulls have a slight edge, as BTC is trading above all major moving averages, and a higher high was set overnight. However, until one of these key levels is broken, patience is required.
BTC Total ETF Flows for 14 Feb: $ - 45.7 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
Ethereum shares a similar posture to Bitcoin, trading between $2,556 and $2,865. ETH remains slightly bullish, with structure and momentum still in favour of the bulls. However, ETH is currently testing a break below the 21 EMA and potentially the 200 EMA, which could signal short-term downside risk.
ETH Total ETF Flows for 14 Feb: $ (data not available)
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
Create a brokerage account today
No Advice Warning
The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.
Stormrake is not a financial adviser and does not provide financial product advice. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Stormrake is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by this newsletter.
Disclaimer
All statements made in this newsletter are made in good faith and we believe they are accurate and reliable. Stormrake does not give any warranty as to the accuracy, reliability or completeness of information that is contained here, except insofar as any liability under statute cannot be excluded. Stormrake, its directors, employees and their representatives do not accept any liability for any error or omission in this newsletter or for any resulting loss or damage suffered by the recipient or any other person. Unless otherwise specified, copyright of information provided in this newsletter is owned by Stormrake. You may not alter or modify this information in any way, including the removal of this copyright notice.Copyright © 2024 Stormrake Pty Ltd, All rights reserved
