Bitcoin Faces Key Tests This Week: FTX Payouts, Trump-Musk Talk, and Fed Meeting Minutes
Bitcoin (BTC) continues to hover below the $100,000 mark, frustrating traders who are waiting for the next major catalyst. However, this week could bring significant market-moving events, including FTX’s creditor repayments, a high-profile Trump-Musk interview, Federal Reserve meeting minutes, and Consensus Hong Kong.
FTX Creditor Payouts: Will the Market See a Liquidity Boost?
The bankrupt crypto exchange FTX is set to begin its first round of repayments, starting with Convenience Class creditors—those owed $50,000 or less. These individuals will receive full compensation plus 9% annual interest, with total payouts expected to reach $1.2 billion.
While some expect these funds to flow back into crypto, 10x Research founder Markus Thielen argues the impact will be limited:
“Only around $7 billion of the total $10.5 billion for larger creditors could be available for reinvestment in digital assets. Even if half of that finds its way back into crypto, that’s just one month of net Bitcoin inflows.”
Meanwhile, Solana (SOL) could be a major beneficiary, given FTX’s historic backing of the Solana ecosystem. Mena Theodorou, co-founder at Coinstash, believes a portion of the FTX refunds will be reinvested in SOL, which has been one of the best-performing tokens over the past year.
Trump-Musk Interview: A Potential Crypto Market Catalyst?
Fox News has announced a high-profile interview featuring Donald Trump and Elon Musk, scheduled for February 19. Hosted by Sean Hannity, the conversation is expected to focus on U.S. economic policies, trade, and possibly digital assets.
Trump’s stance on crypto has evolved in recent months, with his campaign hinting at a potential U.S. Bitcoin reserve strategy. Musk, a longtime crypto advocate, has frequently influenced market sentiment through his support for Dogecoin (DOGE) and digital assets in general.
“If Trump discusses pro-crypto policies or Musk hints at new blockchain-related initiatives, we could see increased volatility in BTC and select altcoins,” Theodorou noted.
FOMC Meeting Minutes: Will the Fed Give Any Hints on Rate Cuts?
On February 20, the Federal Reserve will release minutes from its January meeting, providing insights into policymakers’ views on inflation and interest rates.
Recent hotter-than-expected inflation data (CPI and PPI) suggests that rate cuts may be delayed, which could weigh on risk assets, including crypto. Traders will be looking for any signs of a shift in policy stance, as lower rates tend to boost investment in speculative assets like Bitcoin.
Consensus Hong Kong: A Major Blockchain Conference Kicks Off
One of Asia’s most anticipated blockchain events, Consensus Hong Kong, will begin on February 20, bringing together industry leaders, investors, and developers from across the globe.
With a focus on Web3 innovation, institutional adoption, and regional regulations, the event could drive significant discussions on the future of crypto markets, particularly in Asia.
Market Outlook: A Week Packed With Potential Market Movers
With Bitcoin stuck in a tight trading range below $100K, the outcome of this week’s events could determine whether BTC breaks higher or faces further consolidation. FTX repayments, Trump’s crypto stance, Federal Reserve signals, and new insights from Consensus Hong Kong will all be closely watched by traders.
