With Bitcoin (BTC) struggling below $100,000, here are the key events this week that could spark renewed market action.
FTX Payout
FTX, the now defunct and the world’s third-largest digital assets exchange, is starting its first round of creditor payouts after its collapse in late 2022. The first to be paid are Convenience class creditors, who will receive full repayment along with 9% annual interest on claims up to $50,000.
While there’s optimism that the payouts will boost market valuations, however Markus Thielen, founder of 10x Research, noted that FTX will distribute around $1.2 billion to Convenience Class creditors, but it’s too small an amount to have a significant impact.
Thielen noted that only $7 billion of the remaining $10.5 billion allocated to larger creditors might be available for crypto investment, and half of that could actually flow back into the market. This could result in a net inflow of just over $3 billion, which is equivalent to one month of net Bitcoin inflows.
Besides, Mena Theodorou, co-founder of Coinstash, expects small creditors to invest some of their payouts in Solana. Theodorou noted that with FTX’s past investments in SOL and its 500% growth last year, SOL could potentially outperform the broader market driven by strong on-chain activity and developer growth.
Trump-Musk’s Exclusive Interview
Up next is U.S. President Donald Trump and billionaire Elon Musk’s exclusive interview with Fox News host Sean Hannity on February 19. Notably, this is just ahead of the FOMC meeting on February 20. The conversation is expected to cover topics like politics, tariffs, immigration, and possibly digital assets, which could impact market volatility.
Theodorou noted that Trump’s growing interest in crypto and Musk’s ties to the space might drive volatility, especially if they discuss policy, regulation, or adoption. The Trump administration’s recent delay in moving forward with a strategic Bitcoin reserve has disappointed some crypto enthusiasts hoping for quicker action.
FOMC minutes
On Wednesday, the Federal Reserve will release the minutes from its January meeting, where it decided to keep interest rates steady. The central bank emphasized it was not in a rush to cut rates and wanted to see more progress on inflation.
The minutes are likely to reinforce the Fed’s cautious stance, especially after higher-than-expected CPI and PPI data, which reduce the likelihood of rate cuts. Besides, Trump’s tariffs are also adding inflationary pressure.
Traders will analyze the minutes to see if policymakers view the current policy as restrictive, hinting at a possible rate cut. Otherwise, bond market volatility could follow, potentially impacting risk assets like cryptocurrencies.
