Bitcoin recovers $18,000 as FTX recovers $5 billion in liquid assets

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MBezvodinskikh

Crypto traders are watching Thursday’s CPI print, hoping that any cooling on the inflation front could help restore the desire for riskier assets. In fact, Bitcoin (BTC-USD) was bid overnight to its highest level in nearly a month, surging more than 4% to regain the $18,000 level. Some other notable developments are also hitting the industry following a court hearing on Wednesday for the collapse of crypto exchange FTX.

The latest: Bankruptcy lawyers digging through the rubble left by founder Sam Bankman-Fried have apparently found more than $5 billion in liquid assets, like cash and exchangeable cryptos, that could be sold to help repay creditors. It is not yet known where the money came from, and the figure does not include an additional $425 million in crypto held by the Bahamas Securities Commission. New FTX CEO John Ray previously said at least $8 billion in client assets went unaccounted for in the worst case of corporate bankruptcy he has ever seen.

Although FTX has already put some units up for sale since entering Chapter 11, such as LedgerX, Embed Financial Technologies, and FTX Europe and Japan, the sale of the newly discovered crypto stash could drive prices down. “If you’re trying to sell $1 billion worth of crypto all at once, it’s going to depress the market,” noted Eric Snyder, partner and bankruptcy attorney at Wilk Auslander.

The other side: “We have had many negative events over the past year, and if you look at the price reaction to these events, in general, it is decreasing less and less,” said Vijay Ayyar from the Luno crypto exchange. This is an “indication that the market is accepting the news fairly well, that the selling pressure is being absorbed and is therefore moving into an accumulation phase. It could also mean that the market thinks the worst is over for the market. crypto and that most negative news is now priced in “

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