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Crypto Markets Brace for Billions in Token Unlocks and Bitcoin Distribution


The cryptocurrency market faces significant headwinds as nearly $2 billion worth of altcoin tokens are set to unlock over the next ten weeks, while $11 billion in Bitcoin is poised for distribution to creditors of Gemini’s Earn program and the defunct Mt. Gox exchange.

Why It Matters

The impending token unlocks and Bitcoin distributions could exert substantial selling pressure on the crypto market, potentially delaying any meaningful recovery. Venture capital investors may be compelled to lock in recent gains, capping the upside potential of tokens with positive momentum.

By the Numbers

  • $2 billion in altcoin token unlocks over the next ten weeks
  • $11 billion in Bitcoin to be distributed to Gemini Earn and Mt. Gox creditors
  • Tokens facing unlocks include:
    • $97 million of Aptos (APT)
    • $79 million of Starkware (STRK)
    • $94 million of Arbitrum (ARB)
    • $53 million of Immutable X (IMX)
    • $330 million of Avalanche (AVAX)
    • $64 million of Optimism (OP)
    • $28 million of PRIME
    • Nearly $1 billion of Sui (SUI)
    • $48 million of Ethena (ENA)
    • $171 million of Altlayer’s ALT
    • $135 million of XAI

What’s Next

The crypto market may face waves of fear, uncertainty, and doubt (FUD) in the coming months due to the upcoming supply events. However, pending bankruptcy court approval, $14-$16 billion in U.S. dollars could be paid out to FTX creditors, potentially injecting $3-$5 billion of crypto-native liquidity back into the market.

The Big Picture

The confluence of altcoin token unlocks and significant Bitcoin distributions underscores the challenges facing the crypto market in its quest for a sustained recovery. While the potential influx of liquidity from FTX repayments may provide some relief, the overall market sentiment remains cautious as investors navigate the complex landscape of supply events and regulatory uncertainties.

What do you think about the potential impact of these token unlocks and Bitcoin distributions on the crypto market? Leave a comment below to share your thoughts.

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