The cryptocurrency markets are expected to witness one of the largest injections in history as FTX is set to distribute $5 billion worth of stablecoins to its clients. The FTX’s long-awaited creditor repayment program seems to have kept the traders on edge. A $5 billion stablecoin payout could be good news for those who were waiting to recover the funds, but the market could be more focused on where the money could go
While the stablecoin flows in and out of the exchange have dropped as the exchange reserves deplete, the top tokens like Bitcoin, Ethereum, XRP, and Cardano seem to have been facing some potential selling pressure. Once the recipients receive their portion, the stablecoin reserves on CEX are expected to increase, which could flood the market, increasing the trading activity within the space.
Now the question arises, will Bitcoin or Ethereum benefit from this move?
After marking new highs during the past week, the Bitcoin price has initiated the weekly trade on a bearish note. The token is on the verge of losing below the pivotal support zone, while Ethereum displays strength as it sustains firmly above $2600, maintaining consecutive higher highs and lows. Besides, XRP & ADA continue to trade below the descending trend line, while memecoins are plunging with a double-digit margin.
The payout is one of the largest in crypto history, as the creditors are set to receive funds after 18 months of the exchange’s collapse. Hence, this is expected to hit the exchanges first, which could increase the stablecoin exchange reserve. While some may exit the space, some are believed to get swapped for the other cryptos, Bitcoin being one of the popular choices. Hence, Bitcoin is expected to receive some liquidity that may push the price slightly higher.
With this, the other cryptos could also experience a similar price rise that could help the markets remain under bullish influence.
