FTX-Gründer Sam Bankman-Fried.
Michael M Santiago/Getty Images
The price of Bitcoin has doubled since FTX collapsed a year ago.
It will outperform both the S&P 500 and the “Magnificent Seven” Big Tech stocks in 2023.
Hopes that US regulators will soon approve a spot Bitcoin ETF have helped the cryptocurrency make spectacular gains.
This is a machine translation of an article from our US colleagues at Insider. It was automatically translated and checked by a real editor. We welcome feedback at the end of the article.
FTX filed for bankruptcy on November 11, 2022.
Almost a year later, Bitcoin is not dead – it is thriving.
The cryptocurrency, which remains the largest digital asset in terms of total market capitalization, has seen its price rise since Collapse of Sam Bankman-Fried’s crypto empire more than doubled and has risen by 105 percent to just under $37,000 (34,500 euros) in the last twelve months.
On Thursday he jumped to an 18-month highafter rising four percent in just 24 hours.
Bitcoin price
Bitcoin price this year. Business Insider US / Yahoo! Finance
When you put Bitcoin’s gains into perspective, its stellar rally this year looks even more impressive.
The token’s 120 percent rise in 2023 means it is outperforming not only benchmark indices like the S&P 500 and the Nasdaq Composite, but also the much-touted ones „Magnificent Seven“. This increasingly dominant group According to calculations by Business Insider US, the number of Big Tech stocks has increased by 95 percent since the beginning of the year.
These gains came after one nightmare year 2022 for the entire range of digital systems. In addition to FTX’s failure, crypto prices were rocked by the collapse of other major companies, including the Stablecoin-Emittent Terrathe lender Celsius Network and the hedge fund Three Arrows Capital.
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ETF expectations
Ever-growing speculation about the possible approval of a Bitcoin spot exchange-traded fund by the US Securities and Exchange Commission has fueled Bitcoin’s comeback.
On Wednesday, analysts from “Bloomberg Intelligence“That there is a 90 percent chance that such a vehicle, which would allow large institutional investors in the US to purchase cryptocurrencies, will be approved before January 10th.
While dozens of big-name companies have filed with the SEC for spot ETFs, BlackRock, the world‘s largest asset manager with more than $9 trillion (€8.4 trillion) in assets under management, is perhaps the best known.
Bitcoin has risen more than 40 percent since BlackRock applied for approval for its ETF on June 15. CEO Larry Fink has said he believes a successful spot fund would help “To democratize cryptoand make trading the token cheaper.
Another factor driving Bitcoin’s comeback is low supply in the market, as long-term investors hold onto their holdings while waiting for prices to rise again. According to data from Glassnode, the amount is Bitcoins in circulation currently extremely low.
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Bullish predictions
Traders are also preparing for a so-called “halving” event, expected in mid-2024. Industry veterans believe that this event – when the number of Bitcoins awarded to miners is halved – will Driving prices to over $100,000 (93,300 euros). could.
And it’s not just crypto bulls who are excited about the Bitcoin rally.
Some major banks have started making headline-grabbing price forecasts again in recent months after they… Token Rally had dismissed for much of this year.
In July, the British lender said Standard Chartered predicts Bitcoin will rise to $120,000 next year as miners are likely to hold on to their holdings, while Bernstein last week gave a price target of $150,000.
“You may not like bitcoin as much as we do, but a sober look at bitcoin as a commodity suggests a reversal in the cycle,” Bernstein CEO Gautam Chhugani said in a report. “A good idea is only as good as its timing.”
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The FTX fiasco took its final sad turn earlier this month when Bankman-Fried was found guilty of seven counts of fraud – which could land the exchange’s founder up to 110 years in prison.
But instead of falling out of favor with the disgraced former billionaire, the price of Bitcoin has steadily risen – a sign that even one of the largest financial frauds in US history did not deal the death knell to the cryptocurrency.
Read the original article in English here.