After a sharp drop after the FTX collapse, the top cryptocurrencies are now getting back on their feet.
On Thursday, Bitcoin kept going up for the ninth day in a row and jumped above $18,000. This is the longest winning streak since 2020.
The most popular digital currency in the world went up by more than 10% in January and another 8% in the last week. The CoinMarketCap website says that as of 11 a.m. GMT on Thursday, it was trading at $18,187, which is a 4% increase over the past 24 hours.
According to Bloomberg, Bitcoin’s value has gone up because inflation is going down and people are hoping that “the Federal Reserve will slow the pace of interest-rate hikes.” The latest rally is “a stark contrast to last year’s slump.”
Bitcoin lost almost 65% of its value in 2022, when the cryptocurrency market as a whole was hit by a number of bankruptcies and collapses, including the implosion of FTX, which was the second-largest cryptocurrency exchange at the time it went bankrupt.
Michael Purves, the founder of Tallbacken Capital Advisors, said, “Risk assets have been rallying because the terminal rate is slowly but surely coming to the forefront and positioning has been bearish and transitioning, which means bullish near-term price action.”
Even though it was recently said that FTX’s collapse could cause Bitcoin’s price to drop by 70% this year, analysts think that once the outlook for the digital asset market is clear, big players, like institutions, will come back and drive up the price.