FTX Compensation Begins, SOL ETF Accepted, Is a Turning Point for Altcoins Coming?
1. FTX Compensation: A New Variable in the Market
Previously, I thought the FTX compensation would be delayed for years like the Mt. Gox incident. But it turns out that this process is accelerating.
Starting from February 18, 2025, FTX will initiate the first batch of compensation, with the total amount expected to be between 7 billion and 8 billion US dollars, primarily distributed in the form of stablecoins.
What does this mean for the altcoin market?
First, most FTX traders are high-risk investors, primarily holding altcoins in their portfolios.
Secondly, current market data shows that most altcoins (including ETH) are significantly undervalued compared to BTC.
Looking back at the market situation during the FTX collapse, BTC was priced around 16,000 dollars, SOL was around 20 dollars, and ETH was about 2,500 dollars.
Now, with funds flowing back into the market, many investors will reassess the current market environment and realize that ETH is undervalued.
In addition to ETH, many altcoins have lagged significantly behind BTC in terms of price increase from the cycle bottom.
Moreover, with the increasingly friendly policy environment of the U.S. government towards cryptocurrencies, I believe that most of this fund will flow into the altcoin market, especially those tokens with real application value, rather than just relying on hype of memes.$SOL