FTX's payments are about to be made, and some analysts predict that these payments are highly likely to flow back into the cryptocurrency market.

Creditors of the bankrupt cryptocurrency exchange FTX will receive over $12 billion in the next few months according to a court-approved payment plan, increasing the possibility that some of the cash might be reinvested into digital assets.

Earlier, a U.S. court judge approved FTX's restructuring plan, allowing it to make its first repayments to creditors, involving over $14 billion.

In June of this year, the bankrupt exchange had $12.6 billion available to return to customers, a figure that could reach $16.5 billion after discovering and selling all its assets, as the price of Bitcoin has increased 2.6 times since FTX's collapse, making the proceeds from FTX's asset sales higher than estimated.

According to FTX's published information, the group has recovered between $14.7 billion and $16.5 billion, with creditor claims amounting to $11.2 billion. Therefore, according to the restructuring plan approved by Judge John Dorsey, 98% of creditors can receive 119% of the reported amount in November 2022. FTX CEO John Ray III stated that the group's goal is to repay all non-government creditors in full, including interest.

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Cryptocurrency traders are now looking for sources of volatility to help Bitcoin and other tokens break out of a long-term slump. Despite October typically being a seasonally strong period for digital assets, an index measuring the top 100 tokens has fallen by 3% this month, increasing the possibility that the cryptocurrency market's year-long rebound has lost momentum.

Magnet Capital Co-Chief Investment Officer Benjamin Celermajer said that the anticipated FTX payments are "essentially providing liquidity to known cryptocurrency traders. It is highly likely that some of the funds will flow back into the cryptocurrency market, potentially acting as a price catalyst for a liquidity-starved market."

It is worth noting that repayments will not happen immediately; FTX must first establish a trust and hire companies to oversee the distribution process.

Galaxy stated that transfers to smaller creditors could begin as early as December, while transfers to larger creditors will be completed in the first half of next year. The company said that remaining claims may take up to three years to resolve.

Research firm K33 estimated the "potential demand of FTX redistributors" at $2.4 billion in a report but cautioned that the current impact on the cryptocurrency market may be "moderate" as payments will be phased in next year.