Bitcoin back above $18K for the first time since FTX’s fall

A year full of chaos

FTX, once one of the largest crypto exchanges in the world, went bankrupt last month and took large crypto companies such as BlockFi into the abyss. This was very bad news for the crypto market and therefore all crypto prices crashed.

Following news of the collapse, investors rushed to get rid of volatile assets, creating even more chaos this year in what was already a highly volatile market.

Bitcoin hit a two-year low after the FTX news, and the market recovered slowly as the contagion spread to companies like Genesis, a crypto lender owned by crypto giant Digital Currency Group.

So while the crypto market is making a comeback this week, Bitcoin is still in a lot of pain from this year’s relentless bear market. The BTC price is 73 percent lower than in November 2021, when it reached an all-time high of $69,000.

Not only the fall of FTX has damaged the crypto market

Not only the collapse of crypto exchange FTX has caused crypto prices to fall. The sky-high global inflation has also hurt both the stock market and the crypto market. This meant that both the Federal Reserve and the European Central Bank felt compelled to raise interest rates. And that’s bad news for risky assets.

However, with inflation in the US appearing to be falling, better times are ahead for the crypto and stock markets. Analysts expect that the Federal Reserve will slowly scale back interest rate hikes and that could well cause a significant crypto price increase.

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