Crypto Markets Brace For $5 Billion FTX Liquidity Shock: Expert
Crypto analyst Miles Deutscher highlighted the imminent distribution of approximately $5 billion in stablecoins from the FTX bankruptcy estate to creditors, starting May 30. This event could significantly impact digital-asset markets, as it represents about 2% of the total stablecoin supply. Deutscher anticipates that most recipients will reinvest the funds into the crypto ecosystem rather than cashing out, potentially driving Bitcoin prices to $120,000 and initiating an alt-season. He noted that current market conditions, including Bitcoin's proximity to all-time highs and Ethereum's performance, create a favorable environment for this liquidity influx. Deutscher dismissed the notion that the event is already priced in, citing muted market chatter compared to previous repayment schedules. The distribution's effects will become clearer as creditors complete verification by June 1, with on-chain data expected to reveal how the funds are allocated. This influx could mark a turning point for the crypto market, injecting fresh capital and closing a challenging chapter.
