March 29, 2023
Finance International

Bitcoin Hops Above $18,000 To Elevated Status In A Month, As FTX Attorneys Recover $5 Billion

On Thursday surged to its highest price in nearly a month, as traders bet on a U.S. inflation cooldown and digested news that lawyers for defunct crypto exchange FTX found billions of dollars’ worth of assets.

The world’s largest digital currency climbed above $18,000 for the first time since Dec. 14 late Wednesday, increasing in value by about 5% in the last 24 hours. Bitcoin was trading at $18,154.35 as of 5 a.m. ET Thursday morning, according to CoinMetrics data.

On Wednesday, attorneys for collapsed crypto exchange FTX said they had found around $5 billion in “liquid” assets, including cash and digital assets. The recovery will be a welcome boon to FTX customers after the crypto exchange imploded in November.

FTX lawyers nevertheless warned the $5 billion cache was so high that selling the assets could lead to significant downside pressure on the market, driving down their value.

“Bitcoin has been in a downtrend for over a year now, which is a standard period of a bear market in crypto,” Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, told CNBC in emailed comments Thursday morning.

“We’ve had many negative events transpire over the past year, and if one looks at the price reaction to those events, in general it’s been declining less and less — an indication that the market is accepting the news quite well, sell pressure is being absorbed, and hence we’re moving to an accumulation stage,” he added. “This could also mean that the market thinks the worst is over for crypto and that most negative news in now priced in.”

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