The crypto world’s about to get a wake-up call, and it’s coming in the form of a $5 billion liquidity shock.
This is the first big payout from the FTX bankruptcy estate since that colossal collapse back in 2022.
Miles Deutscher, the sharp crypto analyst and trader, laid it out plain and simple, May 30th might just be the most important day of this crypto cycle.
Lot of old-new liquidity?
Around $5 billion in stablecoins, think USDT, USDC, the stuff that keeps the crypto wheels greased, is hitting creditors’ accounts.
That’s about 2% of the entire stablecoin supply, guys. Now, you might be thinking, big deal, they’re just getting their money back.
But hold your horses, Deutscher argues most of these creditors didn’t run screaming to the banks after the FTX fiasco.
Nope, they stayed in crypto, and that means this $5 billion isn’t going to sit idle. It’s gonna swirl back into the market, likely fueling fresh trades, fresh bets, fresh life.
He’s even brave enough to say this liquidity boost could be the spark that shoots Bitcoin up to $120,000 and kickstarts the altseason we’ve all been itching for.
With Bitcoin flirting near its all-time highs and Ethereum finally flexing some muscle against Bitcoin this year, the timing couldn’t be sweeter.
Plus, US lawmakers are inching closer to passing stablecoin regulations, adding a bit of clarity to the sector.
It is priced in?
Now, some naysayers say, hey, this is all priced in already. But Deutscher ain’t buying it. He points out that if everyone knew this was coming, the chatter would’ve been deafening all week.
Instead, the market’s barely blinking, like a sleeper agent waiting for the signal. The real action starts when those stablecoins hit the blockchain, and creditors start moving their funds.
What happens next? That’s the million-dollar question. Or $5 billion, in this case. Some will buy Bitcoin, others Ethereum, and some might chase those spicy altcoins. The only thing we know for sure?
This is fresh, net new liquidity flooding the market. And liquidity, my friends, is the lifeblood of any rally.
Hopium?
Creditors have until June 1 to verify their identities and claim their stablecoins through BitGo.
By the end of May, we’ll start seeing the first on-chain signs of this money moving.
Will it be a quick jolt or the start of a full-blown risk-on party? Let’s figure out! Deutscher is quite optimistic.
“This could be a pretty good setup alongside the other catalysts.”
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