Bitcoin Volatility Returns: FTX Creditors to Receive $1.2B in Reimbursements

Bitcoin's consolidation phase appears to be nearing its end, with several key events this week poised to inject volatility into the cryptocurrency market. FTX, the collapsed crypto exchange, is set to launch the first round of creditor reimbursements, targeting convenience creditors with claims of up to $50,000. These creditors will receive full principal and 9% annual interest compensation. According to Markus Thielen, founder of 10x Research, the total amount of this round of reimbursement is about $1.2 billion, a relatively limited scale.

Mena Theodorou, co-founder of the cryptocurrency exchange platform Coinstash, expects some of the reimbursement funds to flow into the Solana ecosystem. Considering FTX's significant previous investments in SOL and the Solana ecosystem, along with SOL's over 500% price increase in the past year and the ongoing growth in on-chain activity and developer numbers, these funds are likely to flow back into the network.

Other key events of market interest include a scheduled conversation between former U.S. President Donald Trump and Tesla CEO Elon Musk on Fox News on February 19. The discussion is expected to cover topics such as cryptocurrency policy and regulation. Additionally, the Federal Reserve will release the minutes of the January meeting on February 20, with the market focusing on inflation data and interest rate policy direction. The Consensus Hong Kong conference is also set to open on Tuesday, expected to attract thousands of participants from over 90 countries.