Crypto market tops $1 trillion for first time in months as Bitcoin recovers from FTX-induced crash

[ad_1]

Topline

Bitcoin hit a two-month high over the weekend as the crypto continues to rebound from a crash following the staggering collapse of industry titans FTX and Alameda Research, although looming macro concerns may soon gnaw on crypto earnings.

Bitcoin is up 27% in 2023.

NurPhoto via Getty Images Highlights

Bitcoin traded as high as $21,325 late on Sunday, its first time above $21,000 since Nov. 5, the day before Binance CEO Changpeng Zhao said his exchange sold off. all of its holdings in rival cryptocurrency exchange FTX token following a report of questionable finances from FTX and Alameda. , exposing the unraveling companies.

Likewise, the combined market value of all cryptocurrencies passed the $1 trillion mark for the first time since early November, according to CoinGecko, at $1.020 billion on Monday.

Bitcoin, the world’s most valuable digital asset, gains slightly on Monday, trading at $21,108 Monday at 12:45 PM EST, but bitcoin is still up 27% since the start of 2023, while Ether , the second most valuable crypto coin by market value, is up 30% year to date.

The jump comes amid a broader stock boom, with the S&P 500 up 4.6% in 2023, as growing data points to cooling inflation, which investors hope will spur the Federal Reserve’s turn to take its foot off the interest rate hike pedal. .

crucial quote

Crypto is the biggest winner from the current surge in risk appetite, OANDA analyst Craig Erlam wrote in a Monday note, warning that it’s unclear whether it will acts of a real resurgence or just a brief rebound.

Key Context

Bitcoin peaked at over $65,000 in November 2021, while the total crypto market peaked at just over $3 trillion at the same time. Digital assets cratered in value in 2022 during a broader downturn caused by several interest rate hikes from the Fed, forcing investors to largely turn their backs on risk-sensitive assets and a breakout. confidence in the crypto industry as several major crypto players went bankrupt. . Despite its recent peak, Bitcoin is still down 51% from this point in 2022.

Contra

The recent surge in stock prices will soon hit an air pocket and end up looking premature, JPMorgan Chase analysts led by Mislav Matejka wrote in a recent note, adding that the market is behaving as if we were in a phase early cycle recovery, but the Fed hasn’t even finished the hike yet.

Further reading

Recession now looks more likely than notHere’s what big bank earnings revealed about the economy (Forbes)

FTX secretly funneled a $50 million loan to its Bahamian bank through an executive firm (Forbes)

Binance is bleeding assets, $12 billion gone in less than 60 days (Forbes)

[ad_2]