Analyst Explains How the $5B Distribution from FTX Could Trigger the Next Bull Cycle

As Bitcoin and Ethereum approach critical resistance levels, market sentiment is changing rapidly. Analysts are predicting an imminent Altseason, with upward momentum building across the market, even as macroeconomic uncertainty continues to shake global markets. Despite rising treasury yields and geopolitical tensions, crypto assets are showing strength, and altcoins seem poised to benefit next. Prominent analyst Axel Bitblaze highlighted May 30 as a potentially pivotal moment in this cycle. This week, over $5 billion in stablecoins will be distributed to FTX creditors—a massive liquidity injection that represents almost 2% of the entire supply of stablecoins. Unlike previous events, this capital is expected to remain within the crypto ecosystem. Most of these investors stayed in the crypto market despite the FTX collapse. Now, as they regain access to their funds, many are likely to reinvest this capital back into the market. With Bitcoin aiming for $120,000 and Ethereum challenging the $3,000 level, the stage is set for capital to flow into high-beta altcoins and drive an Altseason.

The collapse of FTX in late 2022 was a brutal event, marking the climax of the previous bear market. It triggered mass panic, billions in liquidations, and the final capitulation that ultimately set the cycle's bottom. Though devastating in the short term, it paved the way for recovery. Now, almost two years later, May 30 could become the most important day of this new phase. FTX is distributing over $5 billion in stablecoins to creditors this week—a long-awaited step in the bankruptcy process. These payments represent nearly 2% of the total stablecoin supply and will hit the market in a large wave. But this is not just idle money returning to passive holders. Most of these users stayed in crypto during the storm. They didn't leave—they adapted, held on, and are now regaining liquidity amid a bullish scenario. The timing couldn't be better. Ethereum is rising, flirting with a critical resistance level that, if broken, could confirm an important move for altcoins. Bitcoin is hovering near its all-time highs, altcoins are gaining serious traction, pro-crypto narratives are heating up in Washington, and regulatory progress is finally underway. Everything is aligning at once.

Bitblaze explains that this $5 billion return of capital could be the exact catalyst the market needs. In his view, this sudden liquidity injection could propel Bitcoin towards $120,000—and unlock the altseason that traders have been waiting for. Ethereum is eyeing a breakout at $2,700 as the Altseason momentum builds. Ethereum (ETH) is currently trading at $2,638, consolidating just below a key resistance zone at $2,700. After a sharp rally in early May, ETH has maintained its gains and formed a solid base above the 34-day EMA ($2,331) and key moving averages. The 200-day SMA, situated at $2,697, now acts as a critical ceiling for price action.