"FTX Payouts Spark Crypto Hopes; Trump-Musk Interview Looms"

Bitcoin (BTC) has been struggling to break above the $100,000 mark, but several key events this week could spark renewed market action in the crypto sphere. The first of these events is the commencement of the first round of creditor payouts by FTX, the now-defunct third-largest digital assets exchange. Convenience class creditors will be the first to receive full repayment, along with 9% annual interest on claims up to $50,000.

While there is optimism that these payouts will boost market valuations, Markus Thielen, founder of 10x Research, has noted that the total amount distributed to Convenience Class creditors is around $1.2 billion, which is not significant enough to have a substantial impact on the market. Thielen also pointed out that only $7 billion of the remaining $10.5 billion allocated to larger creditors might be available for crypto investment, with half of that potentially flowing back into the market. This results in a net inflow of just over $3 billion, which is equivalent to one month of net Bitcoin inflows.

Mena Theodorou, co-founder of Coinstash, expects small creditors to invest some of their payouts in Solana (SOL). Theodorou believes that with FTX's past investments in SOL and its 500% growth last year, SOL could potentially outperform the broader market driven by strong on-chain activity and developer growth.

Another event that could impact the crypto market is the exclusive interview between U.S. President Donald Trump and billionaire Elon Musk with Fox News host Sean Hannity on February 19. This interview comes just ahead of the FOMC meeting on February 20 and is expected to cover topics such as politics, tariffs, immigration, and possibly digital assets. Theodorou notes that Trump's growing interest in crypto and Musk's ties to the space might drive volatility, especially if they discuss policy, regulation, or adoption. The Trump administration's recent delay in moving forward with a strategic Bitcoin reserve has disappointed some crypto enthusiasts hoping for quicker action.

The Federal Reserve will release the minutes from its January meeting on Wednesday, where it decided to keep interest rates steady. The central bank emphasized that it was not in a rush to cut rates and wanted to see more progress on inflation. The minutes are likely to reinforce the Fed's cautious stance