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Leading crypto asset Bitcoin has been on the mend since the FTX bankruptcy situation and is now riding a two-month high.
Bitcoin (BTC) has recouped all losses incurred since the catastrophic FTX collapse last November. The leading digital currency recently hit a new post-FTX high, holding firm at over $21K for the last two days. This is well above Bitcoin’s November 2nd price of $20,283.
Bitcoin’s price jumped more than 22% in the last seven days, about the same decline it suffered between November 7th and November 8th. At the time of the price downswing, investors in the crypto space were scrambling to assess the impact of a potential FTX crash and likely Binance bailout. In the following weeks, which eventually saw FTX’s collapse, Bitcoin price dipped below $16K several times.
Bitcoin’s new two-month high also comes as suspicions regarding the crypto market’s validity gain momentum. In addition, new research suggests that the current BTC price boost may no longer be a natural phenomenon. According to a Material Indicator analysis on Binance’s BTC/USD pairing, there was no support pulling yet from those bidding Bitcoin higher. Material Indicator also commented further, saying:
“Been expecting the block of bids placed Fri the 13th to rug, but it’s attracted over 2x the amount of bid liquidity into the range, which is short term bullish. IMO, this move seems choreographed. Not fighting it, but limiting exposure to manage risk.”
Bitcoin Initially Hit $21,455 for the First Time Post-FTX Crisis
BTC consolidated above $21K after hitting $21,455 on Bitstamp amid a bullish recovery well after the FTX slump. Despite widespread skepticism regarding Bitcoin’s newfound rally, the leading token continued to defy the odds of a significant retracement. However, analysts ponder the rally’s staying power, with CryptoQuant contributor Phi Deltalytics flagging potential insufficient demand. The commentary said in part:
“Such increase in selling pressure along with decreasing reserve of stablecoin for purchase will likely lead to a short-lived recovery rally. More demand is needed for the rally to be sustainable.”
Furthermore, the surging price comes at a time of deep uncertainty for the broader crypto space. In addition to a sustained digital asset value dwindling, this uncertainty also includes regulation penalizations and incessant staff layoffs.
On Thursday, the Securities and Exchange Commission (SEC) charged two crypto firms, Gemini and Genesis Trading, with offering and selling unregistered securities. Furthermore, crypto exchanges, such as Coinbase (NASDAQ: COIN) and Crypto.com, have embarked on repetitive downsizing.
Bitcoin’s recent price rally sees it lead the way in gains made by other digital currencies, according to CoinMarketCap data. For instance, the prominent altcoin Ether (ETH) has gained more than 18% over the past week, while Binance’s BNB token rose 10%. In addition, Ripple’s XRP coin has also climbed 11% in the last seven days.
However, reports also say that ETH competitor Solana (SOL) rose by more than 44% in the last seven days. The digital currency received a major boost from printing a canine-based non-fungible token (NFT), Bonk Inu, on its blockchain.