Bitcoin (BTC) continues to trade below the psychological $100,000 mark, frustrating traders with its lackluster performance. However, several major events this week could trigger volatility in the crypto markets. From the long-awaited FTX payout to a Trump-Musk interview and crucial FOMC minutes, here’s what investors need to watch.
FTX Payout: Will Fresh Liquidity Enter the Market?
FTX, once the world’s third-largest crypto exchange, is set to begin its first round of creditor repayments. Convenience Class creditors—those owed up to $50,000—will receive full reimbursement plus a 9% annual post-petition interest.
Market analysts remain divided on whether this payout will inject significant liquidity into the crypto market. Markus Thielen, founder of 10x Research, estimates that out of the $10.5 billion allocated for larger creditors, only around $3 billion could flow back into digital assets.
Meanwhile, Mena Theodorou, co-founder of Coinstash, expects a surge in Solana (SOL), citing FTX’s historical ties to the ecosystem. Given SOL’s impressive 500% rally in the past year, fresh capital inflows could further boost its momentum.
Trump-Musk Interview: A Wild Card for Crypto?
On February 19, former U.S. President Donald Trump and Tesla CEO Elon Musk will sit down for an exclusive Fox News interview with Sean Hannity. The discussion is expected to cover politics, trade tariffs, and possibly digital assets.
Trump has recently shown increasing support for Bitcoin and crypto regulation. However, his administration’s announcement to assess rather than immediately implement a strategic BTC reserve dampened market excitement. If the interview signals stronger institutional adoption or pro-crypto policies, it could trigger market movement.
FOMC Minutes: Interest Rate Clues Could Sway Markets
The Federal Reserve will release the minutes of its January meeting on February 21, providing insights into policymakers’ stance on interest rates. While the Fed opted to hold rates steady, hotter-than-expected inflation data in the form of CPI and PPI reports has pushed back hopes of immediate rate cuts.
Traders will closely examine the minutes for any signs of a shift in monetary policy. If the Fed signals a prolonged high-rate environment, risk assets—including cryptocurrencies—could face headwinds. Conversely, hints of a more dovish stance could provide a short-term boost.
Consensus Hong Kong: Blockchain Insights from Asia
CoinDesk’s three-day Consensus Hong Kong event kicks off on February 20, bringing together over 270 speakers and thousands of industry professionals. The conference will focus on blockchain innovation and digital asset investment trends in Asia.
Given Asia’s growing influence in the crypto sector, insights from the event could shape market sentiment. Institutional participation and regulatory developments in the region will be closely monitored for potential market impact.
