FTX to Inject $5 Billion Into the Market Today, Where Will the Liquidity Flow?

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Hello, and welcome to a new edition of the Wealth Vault. Big moves are coming to the altcoin market, with up to $5B in liquidity is expected to hit the market within the next 24 hours. In this update, I’ll break down what this could mean for altcoins, how Ethereum’s recent reversal fits into the bigger picture, and where I currently see Bitcoin heading this week. I’ll also reveal a few altcoins that are standing out to me right now. These are worth watching closely.

Here’s everything I’ll discuss:

💎Market Update

💎FTX Repayments

💎 Where Will the New Liquidity Flow?

💎 Narratives and Altcoins I’m Watching

Let’s get into it ⤵️

💎Market Update

Bitcoin

Despite a brief dip to the $105,000 level earlier today, Bitcoin remains strong. The monthly chart shows a breakout from a consolidation range. Every time this pattern has been broken in the last 2 years has led to significant upside continuation. It will be interesting to see how the monthly candle closes

On the 4-hour chart, Bitcoin continues to form a textbook bullish structure. Price is respecting the 50 EMA as dynamic support while printing a series of higher lows. If this structure holds, a move toward $114,000+ seems inevitable. Altcoins are likely to follow Bitcoin’s lead, as they typically do during major BTC moves.

That said, Bitcoin still needs to reclaim this support line to fully confirm strength on lower timeframes.

BTC currently has several bullish catalysts in play, particularly on the institutional front. Two notable examples are Nvidia’s recent earnings report and a new pro-Bitcoin move by Donald Trump.

Every time Nvidia beats its earnings expectations, Bitcoin tends to react positively. Historically, BTC averages a +2.8% gain in the lead-up to earnings, +0.3% over the next 24 hours, and +3% over the following week. Not massive, but positive.

In addition, Donald Trump’s media company is planning a $2.5 billion Bitcoin treasury initiative. They’re selling $1.5 billion in stock to accumulate what could become one of the largest public Bitcoin holdings. This is an enormous long-term validation of Bitcoin’s role in corporate finance.

Ethereum

$ETH/ $BTC chart has formed a textbook rounding bottom at key historical support, while RSI repeats the reversal signal that ignited the last altseason.

And it’s not just $ETH/BTC showing signs of strength. Ethereum is also showing momentum against Solana, its main competitor during this cycle. The ETH/SOL ratio is starting to tick up from key support, breaking daily momentum indicators like the RSI.

When ETH starts to outperform BTC, it often breathes life back into the entire altcoin market. DeFi, Ethereum memes, stablecoin protocol are all positively correlated to ETH’s on-chain health and price action.

We’re also starting to see early signs of institutional interest. A newly listed NASDAQ company, Sharplink, is building an Ethereum treasury using a MicroStrategy-style private placement model. This suggests that, like Bitcoin, Ethereum could be entering a new phase of corporate adoption. This coupled with the growing support for stablecoin regulations in the U.S. via the GENIUS Act gives you the bigger picture of what will follow.

TOTAL

The total crypto market cap ($TOTAL) has reclaimed its ascending trendline and is now pushing toward the $3.65 trillion resistance. Historically, every touch of this support has marked a bottom. Altcoins are starting to gear up for their next move higher.

💎FTX Repayments

While this has been a major topic throughout this cycle, the actual distribution of funds starts today on May 30th, with approximately $5 billion in stablecoins set to reach creditors’ accounts. That’s nearly 2% of the total stablecoin supply

Worth noting, most of these creditors never left crypto, even after the FTX collapse, and now they’re getting a large chunk of capital back. That capital, in all likelihood, will be rotated back into the market. This could be the trigger that sends Bitcoin toward $120K and sets off the long-awaited altseason.

💎 Where Will the New Liquidity Flow?

While a good portion of this new liquidity will be soaked up by mega caps like Bitcoin and Ethereum, some of it will also trickle into top-quality altcoins. Retail participation has been dry for months, so this injection could kickstart a new wave of activity. And when you combine that with the other catalysts in play, this does feel like a decent setup for something bigger.

The total altcoin market cap (excluding the top 10) has been consolidating above a key pivot zone and holding the 3-day trend line. We previously saw a rejection at this level, which formed a triple-bottom support zone around April 7. Now that we’ve reclaimed it, this kind of steady price action shows strength.

Price is chopping, but it’s consolidating, and so is sentiment. This same pattern happened last November, where the market was dead quiet before it exploded.

💎 Narratives and Altcoins I’m Watching