Crypto bulls are extending one of the most unlikely rallies of the year thus far, pushing Bitcoin above $21,000 for a second day. That means the digital currency has now recouped all of its losses since FTX’s spectacular collapse in November.
The rising tide has lifted most crypto boats, reports the DealBook newsletter. Even some beaten tokens, including FTT, the internal token of bankrupt exchange FTX, have rallied as investors bet the Federal Reserve will cut its interest rate hikes, leading to a broad asset rally. risky. Shares in Coinbase, the publicly traded crypto exchange that has been laying off workers and cutting costs, gained at the open in New York; it’s up more than 30 percent over the past week.
But the cryptanalysts They are divided about whether the rally is sustainable; By Wednesday afternoon, Bitcoin had dipped back below $21,000. Skeptics argue that the fundamentals for a long-term rise are lacking, making the recent jump a long shot for investors.
The crypto rally comes as lawyers for Sullivan & Cromwell, the law firm advising on FTX’s multi-billion dollar bankruptcy, revealed that the company’s assets were worth approximately $5.5 billion, including $1.7 billion in cash and $3.5 billion dollars in crypto assets. That makes this broader rally significant for FTX creditors, if it lasts at all.
