Coinbase Bets on FTX’s $5B Liquidity Injection to Jolt Crypto Markets

FTX’s massive repayment could flood the market with fresh capital—just in time for the next speculative frenzy.

Market makers and whales are already licking their chops at the prospect of $5B re-entering circulation. Will it spark a rally or just line the pockets of early exiters? Only time—and maybe a few shady OTC deals—will tell.

Ah, the circle of crypto life: collapse, repay, repeat. At least this time, someone’s actually getting their money back.

• Coinbase analysts believe that the $5B FTX repayment, issued entirely in stablecoins, could help boost crypto market liquidity and also bring about increased trading activity.
• Unlike February’s mixed payouts, this round offers faster access to funds to both retail and institutional creditors.

Coinbase analysts have projected that the anticipated $5 billion repayment from FTX could significantly inject liquidity into the broad crypto market.

As earlier recorded by Tronweekly, the debt payment started on the 30th of May, and more than $5 billion in stablecoins have been approved as the second batch of payments. In this round, the payments are only in stablecoins, unlike the first round that happened in February, where some received crypto and others cash. 

This medium of payment gives people more freedom to use their funds right away. The disbursement process is handled by Kraken and BitGo, and both individual and large clients will get their shares within the next three days.

Coinbase Sees Payout Timing Key to Increase in Market Activities

According to the Coinbase researcher, the method of payment and the market timing could positively affect the crypto market and trading activity. They believe that this new move may cause more money to come into the market, especially from large FTX investors who can quickly put money back into the market.

They highlighted that the February payout had little effect because of investors’ weak confidence, causing the COIN50 index to drop by 16%. The drop was linked to global economic issues like trade worries and investors’ lack of interest in buying crypto. Although, things seem a little better now. 

Bitcoin recently hit a new all-time high; the new market price shows that the big players are showing fresh interest, and the U.S. rules are becoming clearer for investors. Since this round gives stablecoins directly, users, especially big ones, can reinvest faster and with fewer obstacles. The analyst also predicted that this could bring more energy to trading if enough funds flow back into exchanges.

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