Despite long-awaited FTX repayments, the crypto market struggles. Why isn’t this bullish news boosting prices?

FTX Repayments Finally Begin—But Where’s the Market Rally?

After months of anticipation, FTX has officially started repaying creditors. Many expected this to trigger a bullish rally, injecting fresh liquidity into the market. However, the opposite is happening—crypto markets are deep in the red, and investor sentiment remains cautious.

FTT Token Spikes, Then Crashes

Following the reimbursement announcement, FTX’s defunct token (FTT) briefly surged as traders reacted. However, the rally was short-lived, and FTT quickly dropped back down. At the same time, major crypto assets posted losses, contradicting the widespread belief that repayments would fuel a market-wide rebound.

Why Aren’t Crypto Prices Rising?

Several factors may explain why FTX repayments haven’t triggered a rally:

1️⃣ Weak Market Sentiment – Despite bullish news, demand appears to be drying up. Analysts note that just months ago, similar headlines would have sparked a major surge.

2️⃣ Meme Coin Mania – Many investors who previously backed altcoins have shifted their focus to meme coins, diverting capital away from traditional tokens.

3️⃣ Institutional Dominance – With institutional investment at an all-time high, the crypto landscape is evolving, making historical patterns less reliable.

What’s Next for Crypto Markets?

The impact of FTX repayments remains uncertain. While $1.2 billion in liquidity has entered the market, it hasn’t sparked the expected rally. Instead, bearish momentum continues, leaving investors wondering if a shift is coming—or if crypto is entering a new phase of unpredictability.