Crypto investors can breathe easy
Bitcoin Surges Above $20,000
Towards the end of last year, Bitcoin fell sharply due to the bankrupt crypto exchange FTX. Now there are signs of recovery. Investors can breathe again.
Bitcoin plummeted in November.
Milena KalinEditor Economics
Finally hope for Bitcoin investors: After the bankruptcy of the second largest crypto exchange FTX, Bitcoin has risen above 20,000 dollars again for the first time. Since the beginning of the year, the price has risen by 23.1 percent.
The cryptocurrency has been increasing for nine days. The second largest token, ether, is also showing signs of recovery.
In November, the cryptocurrencies all collapsed sharply. The Bitcoin price has meanwhile slipped below $17,000 – and is thus reaching new lows. The reason: the bankruptcy of the crypto exchange FTX. Founder Sam Bankman-Fried (30) is currently on trial for fraud, among other things.
recovery in sight
Now, for the first time, there are signs of a recovery. Investors appear to be regaining confidence in cryptocurrencies. There are several reasons for that.
According to the crypto news portal “btc-echo.de”, Bitcoin has been oversold for months. When it is oversold, the trend reversal becomes more likely.
Positive news from the USA probably also contributed to the reversal. Inflation continued to ease at 6.5 percent in the US in December. In November, this was still over 7 percent.
In addition, five billion dollars were recently found on FTX. It’s too early to say how much FTX will have to raise to compensate its former customers. According to current estimates, FTX could use this to repay a good half of the customer money owed.
Big players should return
According to Noelle Acheson, author of the Crypto Is Macro Now newsletter, there is little doubt that big players will return to the market when the outlook is less gloomy. This will continue to drive up the transactions and the price, as “Bloomberg” writes.
It remains to be seen whether the Bitcoin course can actually continue to increase. A value of 20,000 dollars is actually nothing. At its peak in November 2021, bitcoin was worth nearly $67,000.