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Altcoin Unlocks Put Pressure on Crypto Prices as Bitcoin Distribution Looms at $11B

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Potential Impact of Billions of Dollars in Token Unlocks on Cryptocurrency Market

The cryptocurrency market is facing a potential setback as a wave of supply events worth billions of dollars looms on the horizon. According to a report from crypto analytics firm 10x Research, nearly $2 billion of token unlocks are set to take place over the next ten weeks, which could dampen any hopes of a significant recovery.

Token unlocks are typically seen as bearish events in the crypto world, as they flood the market with assets that were previously locked up in vesting contracts. This influx of supply can put downward pressure on prices, especially for altcoins.

Some of the major token unlocks scheduled in the coming months include aptos (APT), starkware (STRK), arbitrum (ARB), Immutable X’s (IMX), Avalanche’s (AVAX), optimism (OP), PRIME, sui (SUI), ethena (ENA), Altlayer’s ALT, and XAI tokens. Additionally, over $11 billion worth of bitcoin will be distributed to creditors of Gemini’s Earn program and Mt. Gox, further adding to the supply pressure.

Despite the looming supply events, there is a glimmer of hope on the horizon. Arthur Cheong, founder and chief investment officer of DeFiance Capital, suggested that the FTX repayments could inject $3-$5 billion of crypto-native liquidity back into the market, pending bankruptcy court approval.

As the market braces for the upcoming supply events, the CoinDesk 20 Index showed a 3.4% decline over the past 24 hours, with bitcoin and ether both experiencing losses. Bitcoin cash and Solana were among the worst performers, each dropping by more than 7%. With uncertainty looming, investors will be closely watching how the market reacts to the influx of new supply in the coming weeks.

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