Bitcoin recovers all its losses since FTX collapse and analysts question future price trajectory

Bitcoin (BTC) has recouped all losses since the catastrophic FTX collapse last November. The leading digital currency recently hit a new post-FTX high, holding at more than $21,000 over the past two days. This price is well above Bitcoin’s $20,283 price on November 2.

Bitcoin’s price has jumped more than 22 percent in the past seven days, roughly matching the drop it experienced between Nov. 7 and Nov. 8. At the time of the price drop, investors in the crypto space were scrambling to assess the impact of a potential FTX crash and a likely Binance bailout. Over the next few weeks, which ultimately saw FTX’s collapse, the price of bitcoin plunged below $16,000 on several occasions.

Bitcoin’s new two-month high also comes as suspicions about the validity of the crypto-currency market grow. In addition, new research suggests that the current rise in the price of BTC may no longer be a natural phenomenon. According to an analysis by Material Indicator on the Binance BTC/USD pair, there has yet to be any support from those driving up bitcoin prices. Material Indicator also commented further, saying :

“I expected the block of bids placed by Fri on the 13th to be rough, but it attracted more than 2x the amount of bidding liquidity in the range, which is bullish in the short term. IMO, this move seems choreographed. We are not fighting it, but limiting our exposure to manage risk.”

Bitcoin initially hit $21,455 for the first time after the FTX crisis

BTC consolidated above $21,000 after hitting $21,455 on Bitstamp, as part of a bullish recovery well after the FTX collapse. Despite widespread skepticism about bitcoin’s new rally, the major token has continued to defy the odds of a significant retracement. However, analysts are questioning the sustainability of the rally, with CryptoQuant contributor Phi Deltalytics pointing to a potential demand shortfall. The commentary reads in part:

“Such an increase in selling pressure as well as a decrease in the supply of stablecoin to buy will likely lead to a short-lived recovery rally. More demand is needed for the rally to be sustainable.”

Furthermore, the price surge comes at a time of deep uncertainty for the broader crypto space. In addition to a sustained decline in the value of digital assets, this uncertainty also includes regulatory penalties and relentless staff layoffs.

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On Thursday, the Securities and Exchange Commission (SEC) charged two crypto companies, Gemini and Genesis Trading, with offering and selling unregistered securities. In addition, crypto-currency exchanges, such as Coinbase and Crypto.com, have embarked on repeated staff cuts.

The recent rally in bitcoin’s price sees it lead gains made by other digital currencies, according to data from CoinMarketCap. For example, the popular altcoin Ether (ETH) has gained more than 18 percent in the past week, while Binance’s BNB token has risen 10 percent. In addition, Ripple’s XRP coin has also climbed 11% over the past seven days.

Read:  SEC investigates Binance and Coinbase after FTX implosion

However, reports also indicate that ETH’s competitor Solana (SOL) has risen more than 44% in the past seven days. The digital currency received a major boost from the printing of a dog-based non-fungible token (NFT), Bonk Inu, on its blockchain.

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