FTX will begin its fourth creditor distribution on March 31, with about $2.2 billion set to reach eligible customers through BitGo, Kraken, and Payoneer within 1 to 3 business days.

On paper, this might look like just another routine bankruptcy milestone. But in practice, this could be a fresh liquidity test arriving as Bitcoin trades through one of the harshest macro periods in the past year.

The timing of the distribution is what has the potential to turn it into a major hurdle for the entire market.

CryptoSlate warned earlier this month that the new wave of distribution could create short-term selling pressure in what was already a fragile Bitcoin market. At the time, the concern was that the FTX cash would hit the market just as Bitcoin tried to recover above $70,000. Since then, that setup has only gotten weaker.

Bitcoin’s price drop is what gave this distribution power. About a month ago, we were worried about a large payout hitting the market while it was trying to break higher.

Now, we’re worried about whether Bitcoin can absorb another liquidity test while everything from oil and rates to the dollar moves against risk assets. Brent is on track for a 56% rise this month, the largest ever recorded, while the dollar is also heading towards its biggest monthly spike since last July.

FTX said creditors would begin receiving distributions on March 31, with Dotcom customer claims getting an incremental 18% distribution, bringing cumulative recovery to 96%. US customer entitlement claims will be receiving 5% to reach 100%, while general unsecured and digital asset loan claims will each receive 15% to reach 100%. Convenience claims remain at a cumulative 120% distribution.

Creditors are focused on these numbers, as each percentage point of recovery they get their hands on drastically reduces the damage they suffered from the collapse of FTX almost two and a half years ago.

The rest of the market, however, is focused on a more immediate problem: what will happen when $2.2 billion lands in exchange accounts on a pretty tough week for Bitcoin?

A routine FTX payout meets a risk-off market

Brent crude is on track for a record monthly rise, while markets have moved from pricing Fed easing before the war to effectively expecting rates to stay on hold this year. Overall financial conditions tightened in March at the fastest one-month pace since last April’s tariff shock, driven by higher energy prices, wider credit spreads, rising borrowing costs, and falling stock prices.

In a calmer market, this amount of FTX creditor cash would certainly be notable, but it most likely wouldn’t be a decisive factor in Bitcoin’s short-term stability.

In a market like this, though, the FTX payout certainly can become a real-time test of whether demand is strong enough to absorb a huge wave of liquidity without losing key support. We can see the defensiveness of the market both in crypto prices and the dollar index, which climbed to its highest level in almost a year.