Coinbase Predicts Market Impact of $5 Billion Payout to FTX Creditors

A surge of new liquidity from the $5 billion payout to FTX creditors could positively influence the cryptocurrency market’s dynamics, according to analysts at Coinbase.

On May 30, administrators of the bankrupt crypto exchange began distributing $5 billion in fiat and stablecoins. The funds are expected to reach users via BitGo and Kraken within three business days.

The level of compensation varies by classification: institutional and international claimants will receive 72% of their claims, unsecured creditors 61%. For FTX clients in the US, compensation will be 54%, while users with claims up to $50,000 will receive 120%.

In February, liquidators began distributing assets worth about $7 billion among users in the last category. At that time, the payouts coincided with market pressure from a tariff war and a lack of “pro-crypto catalysts,” experts noted.

As a result, despite the potential influx of liquidity, the index based on the top 50 digital assets by market capitalization fell by 16% over the month.

Coinbase specialists believe the impact of the second round of compensation could be different for several reasons:

• significant payments will be made in stablecoins, facilitating quick reinvestment;
• investors are more optimistic following Bitcoin’s recent rally to a new high;
• greater regulatory clarity is catalyzing institutional player activity.

However, analysts acknowledged that the situation surrounding US trade tariffs remains unstable.

They also found it difficult to determine which category of cryptocurrencies the likely liquidity influx from FTX would most favorably impact: Bitcoin and other high-capitalization coins or riskier altcoins.

As reported in April, FTX liquidators rejected nearly 400,000 compensation claims totaling $2.55 billion.