The case is that the stability of the currency after its depreciation at the end of 2022 indicates that it is recovering and could revive investors. The year-end devaluation was a reflection of the bankruptcy of brokerage FTX after being defrauded by its founder, Sam Bankman-Fred, who was arrested in December.
“What we are seeing is the resumption of pre-crisis FTX prices, which shows that the market has digested and tends to be less concerned with internal crises in the sector, which do not change the fundamentals of currencies,” says Jose Artur Ribeiro, CEO of Coinext.
Other factors that have benefited from the value of bitcoin are the optimism of shareholders, who have returned to investing in the cryptocurrency as the end of the cycle of high interest rates in the United States approaches, with inflation subsiding in December.
Rodrigo Batista, CEO of cryptocurrency exchange Digitra, summed up the situation by saying:
All risky assets like stocks and cryptocurrencies are very sensitive to US interest rates, which in turn are very sensitive to inflation. With the US price index declining in December, within market expectations, there was a resumption of risk appetite by investors, which explains the rally in cryptocurrencies last week.
Bitcoin’s revaluation becomes more evident when we analyze the charts of the past seven days, when the cryptocurrency’s price rose by more than 22%. This trend seems to have affected other assets as well, with Ethereum also seeing a 20% increase over the same period.
On the other hand, some important companies in the sector are experiencing instability, as is the case with Gemini and Genesis Trading, which the US Securities and Exchange Commission has accused of selling unauthorized securities linked to a high-yield product.