Key Events This Week That Could Shake Up Bitcoin’s Stagnant Price Action
Bitcoin (BTC) has been hovering below the $100,000 mark, frustrating traders with its lack of movement. However, several major events this week could inject volatility into the crypto markets.
FTX Payouts Begin – Will the Money Flow Back Into Crypto?
The long-awaited repayment process for FTX creditors is officially set to begin. The collapsed exchange, once the third-largest in the world, will start distributing funds, with Convenience Class creditors—those owed $50,000 or less—being the first to receive full repayment, along with 9% annual post-petition interest.
Some market participants are hopeful that these repayments could drive a fresh wave of crypto purchases. However, not everyone believes the impact will be significant.
“FTX will distribute around $1.2 billion to Convenience Class creditors, which is not enough to make a major impact on the market,” said Markus Thielen, founder of 10x Research. He noted that out of the $10.5 billion allocated to larger creditors, only about $7 billion may be available for crypto reinvestment, and even then, only half of it is expected to re-enter the market—roughly $3 billion, equivalent to just one month of bitcoin’s typical net inflows.
Meanwhile, Coinstash co-founder Mena Theodorou believes a portion of these funds will flow into Solana (SOL), given FTX’s historic investments in the ecosystem. “SOL has surged over 500% in the past year, supported by strong on-chain activity and developer growth. This makes it likely that some of these funds will be reinvested in the Solana network,” Theodorou stated.
Trump-Musk Interview: A Potential Market Catalyst?
A highly anticipated interview between former U.S. President Donald Trump and Tesla CEO Elon Musk will air on Fox News, hosted by Sean Hannity. The discussion is expected to cover topics including politics, tariffs, immigration, and possibly digital assets—any of which could trigger market reactions.
“Trump’s exclusive interview with Musk is set for February 19, just a day before the Federal Open Market Committee (FOMC) meeting,” Theodorou pointed out. “Both have strong ties to the crypto sector, and if they discuss policies or institutional adoption, we could see significant market volatility.”
Trump has recently suggested exploring a strategic Bitcoin reserve, though his administration has yet to take concrete action on this proposal, leaving investors uncertain about the regulatory landscape.
FOMC Minutes: Will the Fed Stick to Its Rate Stance?
The Federal Reserve is set to release the minutes from its January meeting on Wednesday, offering insight into its interest rate outlook. While the central bank opted to keep rates steady last month, officials signaled they weren’t in a rush to cut rates, wanting more signs of inflation cooling before taking action.
With recent Consumer Price Index (CPI) and Producer Price Index (PPI) reports coming in hotter than expected, the odds of a rate cut in the near term have diminished. Additionally, Trump’s proposed tariffs could add further inflationary pressure, complicating the Fed’s policy decisions.
Traders will closely examine the minutes for any signs that policymakers believe current monetary policy is restrictive enough to warrant future rate cuts. If the outlook remains hawkish, bond markets could react sharply, potentially dragging down risk assets like cryptocurrencies.
Consensus Hong Kong: A Global Crypto Gathering
Kicking off on Tuesday, CoinDesk’s Consensus Hong Kong event will bring together more than 270 speakers and thousands of attendees from over 90 countries. The three-day conference is expected to showcase insights into blockchain innovation, Web3 adoption, and digital asset investments in Asia.
With Asia playing an increasingly critical role in the crypto industry, particularly as Hong Kong moves toward becoming a global hub for digital assets, any major announcements or regulatory updates from the event could influence market sentiment.
Final Thoughts
With multiple catalysts in play—including FTX repayments, the Trump-Musk discussion, the FOMC meeting, and a major industry conference—this week could see renewed volatility in the crypto markets. While Bitcoin has remained relatively stagnant, traders will be watching closely for signs of momentum shifting in either direction.
