The bounce in price is a relief that has come to be expected throughout the crypto industry.
Investors and traders might finally have something to cheer about as the world’s largest cryptocurrency Bitcoin jumped over 5% today. The jump follows a Tuesday dip that saw the asset hit a two-year low of $15, 678. This is even as traders continue to thread cautiously amid the FTX exchange’s collapse and fears of a possible contagion from the same. But isn’t it too early to speak about the Bitcoin bull run?
As of press time, Bitcoin is up 5.22% in the last 24 hours, to be trading at $16,537.73, per CoinMarketCap data.
Bitcoin Bull Run: Potential Relief for an Edgy Market
Without a doubt, the past couple of days have been really difficult for the crypto market. Especially with the collapse of the $32 billion-worth FTX exchange. Investors remain conscious of the possibility of an unavoidable contagion as they search for hints to show if firms they are dealing with, may have been exposed to FTX in any way.
Further validating the fears is an earlier report that suggests that FTX could have more than a million creditors. And with the company having just about $1.24 billion in cash balances of the $3.1 billion owed to its 50 largest unsecured creditors alone, investor fears will remain for now.
Nonetheless, the bounce in price is a welcome relief and one that has come to be expected. This is because, like most other crypto assets, Bitcoin has been oversold in the past one or two weeks.
Bears or Bulls
The 5% rally has expectedly begun to draw the attention of crypto enthusiasts. This is as they begin to look toward different angles for answers regarding whether this will be a short-term rally or a sustainable bull run.
To this end, Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno has weighed in. Speaking in a recent interview with CNBC, he said partly:
“This move doesn’t indicate any bullishness yet … We could be seeing a bearish bounce here.”
Ayyar then added that the next resistance should be at around $17,000.
Meanwhile, it is also worth noting that Bitcoin isn’t the only cryptocurrency seeing gains today. The world’s second-largest crypto Ether also saw a bounce on Wednesday. As of publication, it was up 7.48%, trading at $1,179.
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