Crypto Volatility Ahead as $2B in Altcoins Unlock, $11B Bitcoin Distribution Looms: Is Another Crypto Winter Coming?
The crypto correction isn’t showing signs of ending, and a multi-billion-dollar supply shock could throw the market into further turmoil. Crypto analytics firm 10x Research warns that over the next ten weeks, nearly $2 billion worth of previously locked altcoin tokens will become available for trading, potentially causing significant market disruption.
Large token unlocks in crypto often spell trouble for prices. This is because they suddenly increase the available supply of a coin. These extra tokens were previously locked away and are often given to project teams, organizations, and early investors like venture capital firms.
According to a recent report, the crypto market is about to experience a major influx of tokens over the next two months. The report outlines the following expected unlocks:
- $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
- $01 billion of Sui (SUI)
- $48 million of Ethena (ENA)
- $171 million of Altlayer (ALT)
- $135 million of XAI tokens.
The report warns that venture capital investors, tempted to secure recent profits, could limit the growth of otherwise promising tokens. This pressure is particularly concerning for tokens with pending unlocks that will increase their available supply.
On the other hand, altcoins aren’t the only ones facing pressure. K33 Research analyst Velte Lunde warns that over $11 billion in Bitcoin (BTC) is about to be released to creditors of the Gemini Earn program and the long-gone Mt. Gox exchange. Lunde predicts this could lead to a surge of “FUD” (fear, uncertainty, and doubt) in the crypto markets.
However, amidst these events, there’s potential relief: FTX bankruptcy repayments of $14-$16 billion in USD could be approved. Arthur Cheong of DeFiance Capital believes a good portion of those funds might flow back into crypto.
Wednesday was a rough day for crypto. The broad CoinDesk 20 Index took a 3.4% dive in the last 24 hours. Bitcoin slid 2.5% to $61,500, and Ether (ETH) fared worse, dropping 3.6%. The biggest losers in the index were Bitcoin Cash (BCH) and Solana (SOL), each plummeting more than 7%.
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