FTX Payouts, Trump-Musk Talk, and FOMC Minutes Could Reignite Crypto Market
As Bitcoin (BTC) struggles to get under $100,000, it’s a key activity that could spark new market action this week.
FTX Payment
FTX is the world’s third largest digital asset exchange and will begin its first round of creditor spending after it collapses at the end of 2022. The first payment is convenience-level creditors, who will receive full repayment, as well as 9% annual interest, with claims rising 9% to $50,000.
Although optimistic payments will increase market valuation, Markus Thielen, founder of the 10x study, noted that FTX will allocate about $1.2 billion to convenience-level creditors, but that is too small to produce significant Influence.
Thillen noted that only $7 billion of the remaining $10.5 billion allocated to large creditors can be used for crypto investments, half of which can actually flow back to the market. This could result in a net inflow just over $3 billion, equivalent to a month of net Bitcoin inflows.
Additionally, Coinstash’s co-founder Mena Theodorou hopes that small creditors will invest some of their spending in Solana. Theodorou notes that with FTX’s past investment in SOL and its 500% growth last year, Sol may outperform the broader market driven by strong chain activity and developer growth.
Trump-Musk’s exclusive interview
Next comes the exclusive interview with Fox News host Sean Hannity on February 19 by U.S. President Donald Trump and billionaire Elon Musk . Especially before the FOMC meeting on February 20. The dialogue is expected to cover topics such as politics, tariffs, immigration, and may be digital assets that may affect market volatility.
Theodorou noted that Trump’s growing interest in cryptocurrency and Musk’s relationship with the space could cause volatility, especially when discussing policies, regulations or adoption. The recent delay in the Trump administration’s strategic bitcoin reserves has disappointed some crypto enthusiasts who want to take action faster.
FOMC Minutes
On Wednesday, the Fed will release minutes from its January meeting and decide to keep interest rates stable. The central bank stressed that this is not about rushing to lower interest rates and hopes to see progress in inflation.
Minutes may strengthen the Fed’s cautious stance, especially after expected CPI and PPI data, which reduces the possibility of lowering the rate. In addition, Trump’s tariffs have also increased inflationary pressure.
Traders will analyze meeting minutes to see if policymakers view current policies as restrictive, suggesting that interest rates may be reduced. Otherwise, volatility in the bond market may follow, potentially affecting risky assets such as cryptocurrencies.
