Crypto Rally Erases Some Losses Since FTX Exchange Collapse
Bitcoin, the largest cryptocurrency by market capitalization, surpassed $21,000 on Saturday.
The move has encouraged crypto investors reeling from the collapse of several prominent crypto companies, including crypto exchange FTX.
This is the first time Bitcoin has crossed $20,000 since November 8, 2022, following an 11-day rally.
The rally hurt the bears who liquidated hundreds of millions of dollars in short positions. about $300 million in short-term liquidations.
The second largest token, Ether (ETHE), rose by a whopping 9.7%, as did Cardano and Dogecoin. Solana soared as much as 35% of him.
According to data from CoinGecko, the rise has pushed the cryptocurrency market capitalization above $1 trillion for the first time since November.
After falling from just above 67,500 to lows near 15,000, Bitcoin remained largely flat for about 13 months before buyers again appeared this week.
See: What’s Behind Bitcoin’s Big Rise And Why Crypto Traders Have Done The Worst
The current surge in Bitcoin’s value shows that consumer prices rose 6.5% in December, down from 7.1% in November, according to data released by the US Department of Labor.
Sean Farrell, head of digital asset strategy at Fundstrat, told Bloomberg, “Crypto assets are performing well following the weak CPI index, and the correlation between cryptocurrencies and the macro economy will soon disappear. It suggests that there is no such thing,” he said.
“The follow-through to price action this week is certainly encouraging,” he said, adding that aside from the forced liquidation of troubled crypto firm DCG, “crypto prices have likely hit an absolute bottom.” rice field.
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