Crypto markets are beginning to see recovery following last week’s FTX collapse.
- As we reported yesterday, the Binance crypto exchange is in the process of developing a crypto recovery program for those negatively impacted by the fall of FTX.
- Last week saw the collapse of one of the largest names in cryptocurrency, with FTX revealing a liquidity crisis due to internal abuse of funds that preceded the company’s bankruptcy and billions of dollars of user funds being lost.
- Major cryptocurrencies, notably those linked to FTX, have bounced back following Binance’s announcement—following a market collapse that lasted until this weekend.
- Bitcoin has risen 6.6% since Monday morning. Ethereum rose 7%. Dogecoin rose 7.6%. Cronos rose 5.7%.
- Solana and Serum, both linked to FTX, have stabilized and respectively risen 14.9% and 41.1%.
Why it’s News
The recovery has marked a relief for crypto evangelists who watched the market collapse last week as a result of a virtual bank run that caused multiple fears of other liquidity crises and devaluing major currencies. Larger names like Bitcoin were less affected than smaller ones due to loyalty from users.
In the meantime, crypto investors are still awaiting Binance’s announcement to help repair the billions of dollars in damages and lost money caused by FTX.
“Zhao, operator of the world’s biggest crypto exchange, announced the plan for the fund Monday and said more details would follow. That helped to stabilize sentiment on speculation the step may stem contagion after a $200 billion drop in the value of digital assets since FTX first began teetering,” says Bloomberg.
Backing up a Bit
Bitcoin is still far weaker at this point than it was last year, currently valued roughly at $17,000 when it exceeded $65,000 in November 2021. FTX’s collapse and Binance’s recovery may deepen market weaknesses.
Elon Musk noted on Twitter that he expects Bitcoin to recover, it “will make it, but might be a long winter,” in reference to the cooling of crypto markets in the past few months known as the “Crypto Winter.”