Bitcoin Rises Above $20,000

Finally hope for Bitcoin investors: After the bankruptcy of FTX, the second largest crypto exchange, Bitcoin rose above $20,000 again for the first time. Since the beginning of the year, the price has increased by 23.1 percent.

The cryptocurrency has been rising for nine days. Ether, the second largest token, is also showing signs of recovery.

In November, all cryptocurrencies collapsed sharply. Bitcoin price meanwhile has dropped below $17,000 and is therefore reaching new lows. Reason: bankruptcy of crypto exchange FTX. Founder Sam Bankman-Fried (30) is currently on trial for fraud, among other things.

apparent improvement

Now, for the first time, there are signs of an improvement. Investors seem to be regaining confidence in cryptocurrencies. There are several reasons for this.

According to crypto news portal “btc-echo.de”, Bitcoin has been oversold for months. When oversold, a trend reversal becomes more likely.

Positive news from the US probably also contributed to the reversal. Inflation in the US continued to loosen by 6.5 percent in December. In November, that was still over 7 percent.

Also, $5 billion was found in FTX recently. It’s too soon to tell how much raise FTX will have to make up for its former customers. According to current estimates, FTX could use this to repay half of the money the customer owes.

Great players must return

According to Noelle Acheson, author of the Crypto Is Macro Now newsletter, there’s little doubt that big players will return to the market once the outlook is less bleak. As “Bloomberg” wrote, this will continue to increase transactions and price.

We’ll see if the Bitcoin course can really continue to rise. A $20,000 worth is actually nothing. At its peak in November 2021, bitcoin was worth about $67,000.