FTX’s liquidity injection in $5 billion stablecoin distribution to creditors begins May 30.
One analyst expects this liquidity to act as a catalyst for pumping altcoin prices.
Altcoins could pump alongside ETH to trigger altseason and set new ATHs soon.
The crypto community has been waiting for a trigger event to onset altseason and an altcoin price pump phase. His trigger was expected to come from ETH setting up a new ATH; one community leader expects it to come from FTX’s liquidity injection in $5 billion stablecoin distribution to creditors on May 30. He believes that this move will act as a catalyst to finally push altcoins to hit new ATH prices and trigger altseason.
FTX’s Liquidity Injection in $5 Billion
One of the biggest events in crypto history was the fall of FTX, a then very popular crypto exchange. The CEO, Sam Bankman-Fried has since been tried and sentenced to a prison sentence alongside his accomplices. The crypto community was furious and demanded retribution based on his action. Thus, many believe his sentence does not reflect the damage he inflicted upon FTX users.
As part of the sentence, FTX is expected to return some of the funds it lost on behalf of its users. These repayments have been happening steadily since FTX fell under new management. Their reputation has been soiled and FTX is shut down for good, but leadership was necessary to make sure that these repayments played out fairly, and return whatever they could manage.
https://twitter.com/CryptooIndia/status/1927753545924636792
To specify, FTX is expected to distribute $5 billion to remaining creditors on May 30. This is one of the few distributions FTX has met so far. In previous times when FTX distributed the funds, analysts would guess how the market would react. Would creditors swap to fiat or would they continue to hold other crypt assets and wait for a pump. In previous times, the market was bearish, so many would FUD and sell. Now however, the market is bullish meaning a different reaction would likely happen.
Could This Liquidity Spur Altseason?
https://twitter.com/milesdeutscher/status/1927713791032066155
This line of thought is exactly what is being expressed by a reputed crypto enthusiast and community leader, Miles Deutscher. As we can see from the post above, Deutscher says that no one is talking about this major event. On Friday, FTX is distributing $5 billion worth of stablecoins to creditors. He concludes that this liquidity injection could be the catalyst altcoins need to pump.
So far, altseason has been delayed due to Bitcoin’s prolonged correction phase in Q1 of 2025. Thus, analysts now expect Q2 of 2025 to see a trigger for altcoin price pumps. This trigger was expected to be ETH hitting a new ATH. Perhaps this liquidity will flow into ETH before pushing other altcoins to surge as well. Most analysts expect ETH to pump 5x while many altcoins are expected to pump 10x in the coming months ahead.
