FTX Japan aims to resume withdrawals by year-end, Bitcoin price could find some relief

FTX clients have been facing struggles on every front ever since the company filed for bankruptcy on November 11. However, the cryptocurrency exchange’s Japanese arm is doing all in its power to do right by its customers. The question, however, is whether or not the broader impact of this development would change the trajectory of Bitcoin price.

FTX Japan gives good news

FTX Japan was among the 130 companies that filed for bankruptcy on November 11 following the exchange’s collapse. The filing was the result of FTX facing a liquidity crisis worth about $8 billion that emerged following Binance’s dumping of its FTT holdings. 

However, FTX Japan stands above its sister corporations as the exchange announced that it is preparing to resume customer withdrawals. In an interview with NHK, an unnamed official said that the withdrawals remain on hold because FTX Japan uses the same system as its parent company, which remains suspended. 

Thus, FTX Japan is going to develop its own system, which will allow customers to make their withdrawals. The company held about 19.6 billion yen ($138 million) in cash and deposits as of November 10, when Japan’s Financial Services Agency (FSA) asked the exchange to suspend operations.

This development comes 48 hours after FTX’s announcement of selling and reorganizing some of its companies to recoup funds for returning users’ assets. FTX Japan is also expected to be one of those companies, although no confirmation about the same has been received yet.

This move by FTX would be of some benefit to its creditors, which its previous court filings reported to be in the amount of more than one million. According to another court filing, the top 50 of these creditors alone are collectively owed almost $3.1 billion.

As reported by FXStreet, FTX’s former CEO, Sam Bankman-Fried (SBF), reportedly regretted filing for bankruptcy. SBF believed that had he been given more time, the executive could have raised more money and resumed the withdrawals to end its $8 billion liquidity crisis in a month. 

Bitcoin price takes another dive

Bitcoin price continued to take a hit as the cryptocurrency fell to trade at $16,007 on November 21. At the moment, BTC is moving right above its immediate support at $15,807.

Positive developments, such as the abovementioned FTX Japan-related, could induce some bullish momentum in the crypto market. If Bitcoin price leverages the same, it could retrace its steps to $16,607, which acts as the immediate hurdle en route toward $17,081. If BTC were to reclaim $17,801, it could ease the immediate pressure.

BTC/USD 4-hour chart

Nevertheless, the persisting fear could extend the king coin’s downfall and result in Bitcoin price losing its immediate support at $15,807. This would invalidate the bullish thesis, and BTC could initiate a crash to $15,000, which acts as the psychological support level.