After a dramatic decline in 2022, Cryptocurrencies continue the recovery and from the bottom of June 2022 recover 42% on the upside. Investors had been panicking due to the Federal Reserve’s monetary tightening, and the situation worsened when Binance (a major exchange) announced it would not buy its rival FTX due to inconsistencies in its balance sheets.
Sam Bankman-Fried CEO of FTX was accused of defrauding investors and hollowing out the company by diverting $10 billion in FTT to Alameda Research.
That was one of the breaking moments. The market, which was going through a period of instability, began to fall (-42.6%) reaching $15,000. THE Bitcoin It came from trading at US$64,000 in 2021.
Bitcoin holders breathed a slight sigh of relief as US inflation data came out in November. However, the favored exchange continued to range in the $16,000 to $16,900 range.
On Tuesday, bitcoin closed at $21,300.
Following the arrest of Sam Bankman-Fried ordered by the Attorney General of the Bahamas, the cryptocurrency market has started to find stability. Since December 2022 it has rebounded and remains on the rise, slowly but steadily.
For the crypto market, on the other hand, the increase in interest rates established by the FED seems to be positive. While the 2022 rate hikes were clearly not decisive for bitcoin depreciation, the outlook for 2023 bodes well as long as the US does not tighten its economic policies
Moreover, bitcoin proves to be still the favorite, always susceptible to market volatility, is still one of those chosen to invest, especially for those who follow it closely and carefully as it evolves according to economic variables.
Source: Clarin
