Bitcoin (BTC-USD) experts like to justify its strength to falling inflationary pressures. When the S&P 500 and Nasdaq both rallied on Jan. 20, 2023, BTC rose by an impressive 7.5% on the day. It is $30,000 again, a level that erases recent worries for the crypto industry.
The FTX collapse and numerous platform shutdowns hurt Bitcoin prices. Fortunately, crypto investors are recognizing that BTC is the relative safe haven in this space. Investors also snapped up Grayscale Bitcoin (GBTC). Speculators are narrowing the gap between GBTC’s holding value and the stock price.
FTX’s collapse shocked the sector. Confidence is strengthening again for crypto. FTX located billions worth of lost funds. At the height of the fear, the market thought that FTX could not recover any of its holdings.
FTX’s former US head succeeded in raising $5 million from Coinbase (COIN) and Circle. Brett Harrison’s new crypto venture is a turning point. Despite a critical investigation against FTX, the former staff is allowed to work in this industry.
Your Takeaway
Bitcoin enjoyed a strong rally in so short a time in 2023. Either Bitcoin or some form of decentralized currency will prevail in the financial system.
