Bitcoin has now recovered all its losses since the FTX collapse
- Bitcoin has held above $21,000 for the past two days, well above its Nov. 2 price of $20,283.
- The cryptocurrency fell 22% in less than a day, between November 7 and November 8, as investors struggled to assess the impact of a potential FTX collapse and the likelihood of a Binance-backed FTX bailout.
- It fell below $16,000 several times in the following weeks.
A Bitcoin logo inside a BitBase cryptocurrency exchange in Barcelona, Spain, Monday, May 16, 2022.
Angel García | Bloomberg | Getty Images
Bitcoin has held steady above $21,000 for the past two days, bringing it back above the price it was at when Sam Bankman-Fried’s crypto exchange, FTX, started heading toward bankruptcy.
Since Monday, bitcoin has largely held steady above $21,000, well above its Nov. 2 price of $20,283.
The price of bitcoin has jumped more than 22% in the past seven days, according to data from CoinMarketCap. Bitcoin fell by the same amount in less than a day, between November 7 and November 8, as investors struggled to assess the impact of a potential FTX collapse and the likelihood of a Binance-backed FTX bailout. It fell below $16,000 several times in the following weeks.
CoinDesk first reported irregularities at FTX’s sister hedge fund, Alameda Research, on November 2. Billions of dollars worth of cryptocurrencies started flowing out of FTX within days. A potential rescue deal with ChangPeng Zhao’s Binance fell apart on November 8, and FTX and Alameda both filed for bankruptcy on November 11.
During this period, bitcoin, long the most prominent and well-capitalized cryptocurrency, became a vehicle for investors.
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Bitcoin price has recovered the losses it incurred in the wake of FTX’s collapse
The rising price comes at a time of deep uncertainty for the wider industry. On Thursday, the Securities and Exchange Commission charged two crypto companies, Genesis Trading and Gemini, with offering and selling unregistered securities.
Several rounds of layoffs have hit crypto exchanges, including Coinbase and Crypto.com.
Bitcoin has had a rally that outpaces the gains of other cryptocurrencies, according to data from CoinMarketCap. Over the past seven days, Ether has increased by over 18%. The prices of Binance’s exchange token, BNB, and ripple have risen 10% and over 11% respectively.
But ether competitor solana has seen its prices rise by over 44% in the past seven days, fueled in part by the minting of a dog-based non-fungible token, Bonk Inu, on Solana’s blockchain.
