A Bitcoin logo inside a BitBase cryptocurrency exchange in Barcelona, Spain, Monday, May 16, 2022.
Angel Garcia | Bloomberg | Getty Images
Since Monday, Bitcoin has remained largely stable above $21,000, well above its November 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 8, as investors struggled to assess the impact of a potential FTX collapse and the likelihood of a sustained FTX bailout by Binance. It fell below $16,000 several times over the following weeks.
CoinDesk first reported irregularities to 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 bailout deal with ChangPeng Zhao’s Binance collapsed on Nov. 8, and FTX and Alameda both filed for bankruptcy on Nov. 11.
During this period, Bitcoin, long the largest and most capitalized cryptocurrency, has become a vessel for investors.
Bitcoin Price Recovered Losses From FTX Collapse
The price spike comes at a time of deep uncertainty for the entire industry. Last Thursday, the Securities and Exchange Commission accused two crypto companiesGenesis Trading and Gemini, with the offer and sale of unregistered securities.
Bitcoin has seen a rally that exceeds the gains made by other cryptocurrencies, according to data from CoinMarketCap. In the past seven days, ether gained more than 18%. Binance exchange token prices, BNBand ripple increased by 10% and more than 11% respectively.
But competing ether solana has seen its price increase by more than 44% in the last seven days, propelled in part by the minting of a non-fungible dog-based token, Bonk Inu, on the Solana blockchain.