$5Bn FTX Stimulus Injection Is Set To Propel Bitcoin To New ATH: Here’s The Reason

In the upcoming weeks, over $5 billion will be allocated to creditors of FTX from the estate of the now-defunct crypto trading network, with the next round of payments scheduled for May 30, as indicated by a statement from the FTX Recovery Trust issued yesterday (May 15).

The distributions planned for May 30 mark the second phase of the recovery strategy for the FTX bankruptcy estate. This phase will reimburse four categories of creditors, with payments ranging from 54% to 102% of their FTX assets at the moment the trading network went under in November 2022.

FTX Creditor classifications

FTX Customers:

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

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

Class 6: Non Customers

Check your classification on your FTX voting document pic.twitter.com/pTZ10Q7q7u

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

Comments from FTX Recovery Trust Administrator on the Scale of Repayments, States “This Is an Unmatched Payout Process”

“These initial non-convenience class distributions signify a crucial point for FTX,” remarked John J. Ray III, plan administrator for the FTX Recovery Trust, in the statement released yesterday. “The vastness and scale of the FTX creditor demographic render this a unique payout procedure.”

According to the recovery strategy, members of creditor Class 5—a demographic comprising lenders and trading associates of Alameda Research along with other traders and vendors—are slated to receive reimbursement between 54% and 72% of their claims.

Another cluster of FTX claimants with smaller, unsecured claims can expect disbursements of 61%, whereas claims concerning inter-company interests will be compensated at 120%.

EXPLORE: 12 Top AI Crypto Coins to Invest in 2025

BitGo and Kraken are collaborating with the Recovery Trust to directly transfer the funds to qualifying creditors’ trading protocol accounts within one to three business days after May 30.

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

Interestingly, claims on portfolios valued below $50k are slated to receive 120%, with no explanation provided for why any creditor would be compensated above their original portfolio value.

Bitcoin is currently trading at approximately $103,800, marking a 2% rise on the day following the announcement of FTX’s impending repayments at the end of the month.

(COINGECKO)

Why $5 Billion in Repayments Is a Positive Signal for Bitcoin: Potential for New All-Time High?

Essentially, these reimbursements from the FTX trust are poised to inject significant liquidity into the digital currency markets. The upcoming repayments on May 30 will facilitate the disbursement of substantial capital to creditors.

This group of creditors consists of both retail and professional crypto investors; thus, it is likely that they will reinvest these funds back into the markets. Having already faced challenges due to the FTX collapse and the arduous journey to recover their assets, creditors may adopt a more cautious approach with the reclaimed funds, making BTC a sensible investment choice.

The influx of capital could heighten buying market demand, pushing Bitcoin’s price upward, especially leading into the June FOMC Fed meetings, where many anticipate rate reductions. If Powell indeed lowers interest rates in June, it may provide market participants the opportunity to reallocate into riskier assets.

Additionally, current market sentiment surrounding these repayments is exceptionally uptrend, particularly in contrast to November 2022 when FTX initially collapsed, and BTC traded at a low of $16,000.

Presently, we are in the midst of a 12-16 month phase following a BTC halving that has historically been the most favorable for BTC price movements. This, along with the approaching FOMC meetings and the influx of $5 billion in new capital into crypto, could potentially initiate Bitcoin’s ascension towards $150,000 and beyond in the near future.

Both the $5b FTX creditor payout and Bitcoin Vegas taking place at month-end

all-time highs possible within a fortnight

bring it on

higher

— RookieXBT (@RookieXBT) May 15, 2025

DISCOVER: 20+ Next Crypto to Explode in 2025 

Join The 99Bitcoins News Discord For Latest Market Insights

The article $5Bn FTX Stimulus Drop Is About To Fuel New BTC ATH: Here’s Why first appeared on 99Bitcoins.