Cryptocurrency bulls extend one of the most unlikely rallies of the year so far, pushing Bitcoin above $21,000 for a second day. The digital currency has now recouped all of its losses since FTX’s spectacular collapse in November.
The rising tide has lifted most crypto boats, the DealBook newsletter reports. Even some run-down tokens — including FTT, the internal token of bankrupt exchange FTX — have rallied as investors bet the Federal Reserve will slow rate hikes, prompting a broad rally in risky assets. Shares in Coinbase, the publicly traded crypto exchange that existed Lay off employees and cut costs, won at the New York market opening; it’s up more than 30 percent over the past week.
But crypto analysts are shared whether the rally is sustainable; by Wednesday afternoon, bitcoin had fallen back below $21,000. Skeptics argue that the fundamentals for a long-term rise are lacking, making the recent jump a risky bet for investors.
Crypto rally comes up as attorneys at Sullivan & Cromwell, the law firm, in an advisory capacity FTX’s multi-billion dollar bankruptcy, announced that the company’s assets were valued at approximately $5.5 billion, including $1.7 billion in cash and $3.5 billion in crypto assets. That makes this broader rally meaningful for FTX holders – if it continues.
