Market recovers after FTX crash
Bitcoin and altcoins seem to be recovering from the massive damage caused by the collapse of the FTX exchange and the crisis that followed.
Bitcoin, the leading cryptocurrency, reached an intraday and two-month high of $18,287 during the Asian morning trading session on Thursday, January 12. BTC is up 10% in the last two weeks and 4.2% in the last 24 hours.
The world’s largest digital asset has risen for eight consecutive days, its longest rally since last July, according to Bloomberg.
As analytics firm Glassnode points out in its weekly report, Bitcoin is experiencing a period of historically low realized volatility.
“Such periods historically preceded explosive market movements, and past examples have both halved asset values and caused new bull markets,” the report says.
A breakout appears to be happening at the moment, but it remains to be seen if the momentum will be sustained. BTC has added 10% since the beginning of the year and has been moving up since December 30th.
In addition, the weakening dollar provides a better trading environment for the cryptocurrency. Tallbacken Capital Advisors founder Michael Purves commented that the near-term outlook is very optimistic.
“I think risk assets have risen because the terminal rate is slowly but surely coming to the fore, and the positioning has been bearish and transitional, which means bullish short-term price action”
The big players are expected to return to digital assets when the outlook is less bleak and confidence is restored.
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