Crypto Chaos: FTX Payouts, Trump & Musk’s Wild Ride, and FOMC Minutes Unleashed!

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What to know:

  • Analysts are divided on the impact of FTX’s initial round of payouts, much like a philosophical debate in a smoky tavern.
  • President Trump and Elon Musk are scheduled to engage in a tête-à-tête with Fox News, a spectacle worthy of the grandest stage.
  • The FOMC minutes are likely to echo the hawkish sentiments, as if the central bank were a stern father scolding his wayward children.
  • Consensus Hong Kong kicks off Tuesday, promising a gathering of minds that could rival the greatest salons of history.

As bitcoin (BTC) continues to vex traders with its stubborn refusal to breach the $100,000 mark, we find ourselves at the precipice of events that may yet stir the stagnant waters of the market.

FTX payout

Ah, FTX, once the titan of digital assets, now reduced to a mere shadow of its former self, prepares to distribute its first round of creditor payouts after its tragic demise in late 2022. The Convenience class creditors, those humble souls claiming no more than $50,000, shall receive their due recompense along with a 9% annual post-petition interest—an offer that might seem generous, were it not for the specter of loss that looms over them.

While the air is thick with optimism that these funds will be reinvested, lifting the market like a phoenix from the ashes, not all share this sanguine outlook.

“FTX will distribute approximately $1.2 billion to Convenience Class creditors,” mused Markus Thielen, founder of 10x Research, in a note to clients. “That amount is too small to move the needle,” he lamented, as if mourning a lost opportunity.

Thielen further elaborated that only $7 billion from the remaining $10.5 billion allocated to larger creditors might find its way back into the crypto realm, and even then, only half of that could return to the market. A net inflow of over $3 billion, he calculated, is but a drop in the ocean of bitcoin’s vastness.

Mena Theodorou, co-founder at Coinstash, speculates that small creditors may direct their newfound wealth towards Solana, a digital darling that has risen over 500% in the past year, much to the chagrin of those who missed the boat.

“FTX’s historic investments in SOL make it likely that some of these funds will flow back into the network,” Theodorou opined, as if predicting the whims of fate itself.

Trump-Musk call

In a twist of fate that could only be scripted by the gods of irony, U.S. President Donald Trump and billionaire Elon Musk are set to engage in a dialogue with Fox News host Sean Hannity. The topics of discussion will likely traverse the treacherous terrain of politics, tariffs, immigration, and perhaps even digital assets—each a potential spark for market volatility.

“Trump is set to speak in an exclusive interview with Elon Musk on Fox News on February 19,” Theodorou noted, “just one day before the FOMC meeting.” The anticipation is palpable, as if the world holds its breath for the revelations that may ensue.

Recently, the Trump administration hinted at assessing the feasibility of a strategic BTC reserve, leaving bulls disappointed and wondering if the promised swift action was merely a mirage.

FOMC minutes

Wednesday shall unveil the minutes of the Federal Reserve’s January meeting, where the central bank, like a cautious parent, held interest rates steady. The message is likely to be one of restraint, as inflation looms like a specter in the shadows.

Traders will scrutinize these minutes, hoping to divine whether policymakers perceive the current policy as restrictive, which could hint at a future rate cut. Yet, should the minutes suggest

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2025-02-17 16:31