The fact that Bitcoin fell by 2.5% to $61,500 on Wednesday and similarly faded and Bitcoin Cash lost over 7% in value reveals that the mood in crypto is generally negative. Behind these declines lies the release of potentially billions of dollars of assets into the market. Crypto analytics firm 10x Research warns that the roughly $2 billion token unlock expected to occur over the next ten weeks could drag down the altcoin market.

So what is this token unlocking? Crypto projects can release assets that they have kept locked for a period of time into the market on a certain date to attract investors and ensure the stability of the token price. Although this practice demonstrates the long-term commitment of the project, the introduction of new supply into the market may disrupt the supply-demand balance and lead to price declines.

In the 10x Research report, a total of approximately $2 billion in tokens of popular projects such as aptos (APT), starkware (STRK), arbitrum (ARB), Immutable X (IMX), Avalanche (AVAX), optimism (OP) will be unlocked in the next two months. It is stated that it will be released to the market. This situation may cause investors to sell to protect their recent gains and push prices down, especially when there is a positive momentum in the tokens in question.

While altcoins are struggling with unlocked tokens, concerns continue on the Bitcoin front. K33 Research analyst Velte Lunde filed a lawsuit against creditors of cryptocurrency exchange Gemini’s Earn program and long-shuttered crypto market Mt. He warns about the distribution of a total of $ 11 billion worth of Bitcoin belonging to Gox. The release of such a large amount of Bitcoin could upset the supply-demand balance, leading to serious declines in the price of Bitcoin.

Lunde says crypto investors may face waves of fear, uncertainty and doubt, known as “FUD,” in the coming months. This may cause investors to become risk averse and move away from cryptocurrencies.

There is a silver lining among all this negative news. Arthur Cheong, founder and investment manager of DeFiance Capital, suggests that some of the $14-16 billion US dollar fund that will be paid to creditors of the bankrupt crypto exchange FTX may flow back into the crypto market. This inflow of funds can reduce selling pressure and have a positive impact by providing new liquidity to the market.

Cheong says he expects at least $3-5 billion of crypto-specific liquidity to be injected back into the market. This inflow of funds could offset the selling pressure of the unlocked tokens mentioned above and help the market recover faster.

It remains unclear how crypto markets will shape up in the coming weeks. On the one hand, concerns about unlocking billions of dollars of assets and a significant Bitcoin distribution could pull the market down, while on the other hand, the liquidity influx from the bankrupt exchange could have a positive impact. Investors need to follow the upcoming period carefully and make decisions based on market movements.