18-2-2025 – Several pivotal events this week could potentially shake up the cryptocurrency market as Bitcoin continues to trade sideways, testing investor patience with its subdued performance below the coveted $100,000 threshold.
FTX Begins Creditor Repayments
The defunct cryptocurrency exchange FTX, which collapsed in late 2022, is launching its first wave of creditor compensations. Small-scale creditors, classified under the Convenience category with claims up to $50,000, are first in line to receive full reimbursement plus 9% annual post-petition interest.
Market analysts remain divided on the potential impact of these payouts. Markus Thielen, who heads 10x Research, downplayed the significance of the initial $1.2 billion distribution in a research note issued Monday. “The amount is insufficient to significantly influence market dynamics,” Thielen noted.
His analysis suggests that of the $10.5 billion earmarked for larger creditors, approximately $7 billion might be available for cryptocurrency investment. However, Thielen estimates only half of this sum could eventually return to the market, representing roughly one month’s worth of Bitcoin inflow.
Mena Theodorou, co-founder of cryptocurrency exchange Coinstash, suggests smaller creditors might gravitate towards Solana. “Given FTX’s historical investment in the Solana ecosystem and SOL’s impressive 500% growth over the past year, we anticipate significant fund flow into this network,” Theodorou explained.
Trump-Musk Dialogue and Federal Reserve Minutes
A highly anticipated conversation between former President Donald Trump and tech entrepreneur Elon Musk is scheduled for Fox News, potentially addressing cryptocurrency policies and regulations. The timing of this discussion, occurring just before the Federal Open Market Committee (FOMC) meeting, has caught market attention.
The FOMC minutes, set for release on Wednesday, will provide deeper insight into the Federal Reserve’s January meeting decisions. With recent inflation indicators exceeding expectations and ongoing concerns about Trump’s tariff policies, the minutes will be closely scrutinised for hints about future rate adjustments.
Consensus Hong Kong Conference
The cryptocurrency industry turns its attention to Hong Kong as the Consensus conference commences Tuesday. The three-day event, featuring over 270 speakers from 90 countries, promises to deliver valuable insights into Asian blockchain developments and digital asset investment strategies.
