$5Bn FTX Stimulus Drop Is About To Fuel New Bitcoin ATH: Here’s Why

Over $5 billion will be distributed to FTX creditors from the bankrupt crypto exchange’s estate in the coming weeks, as the next wave of reimbursements is set to take place on May 30, according to the FTX Recovery Trust’s statement released yesterday (May 15).

The upcoming May 30 distributions are the second phase of the FTX bankruptcy estate’s recovery plan. With this next wave, four groups of creditors are set to be reimbursed, with distributions ranging between 54% and 102% of the value of their FTX holdings at the point the exchange collapsed in November 2022.

FTX Creditor claims

FTX Customers:

Class 5: Claims > $50k
5A: FTX International
5B: US

Class 7: Claims <=$50k
7A: FTX Intl
7B: US

Class 6: Non Customers

Can find your class on your FTX voting form pic.twitter.com/pTZ10Q7q7u

— Sunil (FTX Creditor Champion) (@sunil_trades) May 16, 2025

FTX Recovery Trust Administrator Remarks On The Magnitude Of The FTX Repayments, Says “This Is An Unprecedented Distribution Process”

“These first non-convenience class distributions are an important milestone for FTX,” FTX Recovery Trust plan administrator John J. Ray III said yesterday in the statement. “The scope and magnitude of the FTX creditor base make this an unprecedented distribution process.”

Under the recovery plan, members of creditors Class 5—a group that includes lenders and trading partners of Alameda Research and other traders and vendors—will receive distributions between 54% and 72% of their claims.

Another group of FTX victims with small, unsecured claims can expect disbursements of 61%, while claims involving inter-company interests will be paid out at 120%.

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BitGo and Kraken are working with the Recovery Trust and will send the funds directly to eligible creditors’ exchange accounts within one to three business days from May 30.

In total, over $5 billion is set to be distributed on May 30. International claims over $50k are set to receive 72% of their lost portfolio value while $50k+ claims from within the US will receive 54%.

Strangely, claims on portfolios worth under $50k are scheduled to receive 120%, with no information provided on why any creditor would receive more than the original value of their lost portfolio.

Bitcoin is currently trading at around $103,800 and is up 2% on the day following the news of FTX’s upcoming repayments at the end of the month.

(COINGECKO)

Why Is $5 Billion In Reimbursements Bullish For Bitcoin: New All-Time High Soon?

Put simply, these repayments from the FTX trust will lead to a huge liquidity injection into the crypto markets. The repayments on May 30 will see a distribution of significant capital to creditors.

These creditors are a blend of retail and professional crypto investors, and as a result, they are likely to reinvest these funds back into the markets. After already suffering once with the collapse of FTX and the tumultuous journey to get their funds back, the creditors may act more risk-averse with the recovered funds, making Bitcoin the most logical investment choice.

This influx of capital could increase buying pressure and drive Bitcoin’s price higher, leading into June’s FOMC Fed meetings, which many are anticipating rate cuts. If Powell does indeed slash the interest rates in June, it would give market participants the green light to pour into risk-on assets once more.

Lastly, the current market sentiment heading into these repayments is incredibly high, especially compared to November 2022 when FTX initially crashed and BTC was at rock bottom, trading for $16,000.

We’re currently in the middle of the 12-16 month period following a Bitcoin halving that has historically been the best period for BTC price action. This, coupled with the upcoming FOMC meetings and $5 billion of fresh capital flowing into crypto, could kickstart Bitcoin’s run to $150,000 and above in the coming months.

Both $5b FTX creditor payout and Bitcoin Vegas happening at the end of the month

all time highs within 2 weeks time

fuck you

higher

— RookieXBT (@RookieXBT) May 15, 2025