The collapse of the FTX cryptocurrency exchange has shaken the community and the value of individual cryptocurrencies significantly. However, according to CNBC, lawyers managed to secure $5 billion that belonged to the bankrupt exchange. The information benefited the rise in the value of Bitcoin, which rose above USD 18,000 after a month.*
During Thursday’s trading day, the price of the cryptocurrency climbed to USD 18,200, reaching its highest level since December 14, 2022.* The reason for this was the securing of the aforementioned money, which, according to the lawyers, gives hope for a pay-out to the clients of the second-largest cryptocurrency exchange, which went bankrupt in November.
FTX’s lawyers said on Wednesday that they had found the money in liquid assets, including cash and digital assets. They also warned that selling those assets could put pressure on the market and knock down their value.
As the market has been for a long time in a downtrend, or so-called bear trend (a bear trend is defined as when prices fall 20 percent from their highs), Bitcoin’s value has been in a downtrend for more than a year. This is due to a number of events that have negatively impacted the capital markets and have also influenced events in the crypto segment – from the war in Ukraine, through the energy crisis, the rising inflation, to central banks raising interest rates.
On the other hand, experts assume that the worst is over. The positive sentiment persisted on the cryptocurrency market during Friday’s trading day, when Bitcoin’s value crossed the $19 thousand mark, according to Coinmarketcap.com.*
Olivia Lacenova, Chief Analyst at Wonderinterest Trading Ltd
* Past performance is no guarantee of future results.
