A bit of good news is enough to make everyone’s day. That goes double for crypto investors and fans, who are patiently waiting for some good news in regards to Bitcoin’s price. While FTX’s demise severely hurt the crypto market, Bitcoin is on its way back to $20,000 as it seems in the moment. It’s a big move considering it barely held the $17,000 line last week.
Crypto markets in general have moved higher than expected early on Wednesday, and bigger moves are expected. While it’s still a far cry from its $20,000 price before things took a turn south, Bitcoin is clawing its way back. On Wednesday, it moved positively once again, trying a crack at the $18,000 level. It came after a lengthy consolidation and helped Ethereum’s price go back to $1,300 as well.
Consolidation in the Market
It wasn’t just Bitcoin – the crypto market has seen a solid 24 hours after patiently waiting the outcome of the current US inflation report. The data turned out better than expected. Since it’s the fuel that feeds the crypto market in the short term, greens were expected. Bitcoin duly delivered, seeing a slight climb after weeks of uncertainty due to FTX’s fall from grace.
On that note, US prosecutors have just charged Sam Bankman-Fried with fraud. The former FTX CEO was comfortably enjoying life in his Bahamas mansion after promising to find a solution for the lost money on Twitter. Of course, everyone who knew the case knew that charges were coming. It was obvious from miles away, and to be perfectly honest, the right thing to do.
FTX’s demise gave financial organizations who were against Bitcoin the headlines they just needed. It put the market in disarray and made Bitcoin drop its price after it consolidated at around $20,000. That was the level it’ll eventually make a move from, but the FTX setback has pushed that back to god knows when.
But, climbing back to $18,000 is a start, and we hope that by the end of the year, things will return to the $20K normal. The global cryptocurrency market cap was also trading higher for the past few weeks, going up by as much as 3%. The total trading volume was also up to $53.21 billion on Wednesday, signaling a positive shift.
Of course, it could all fall down like a tower of cards, but there are too many positive signals for that. Crypto fans can enjoy these small victories for the moment, and unless something big happens, no one expects a reversal.
End of Year Predictions?
With just a few weeks to go by the end of 2022, everyone’s hoping for a positive momentum. It didn’t come last year but this year a positive shift is definitely needed. The good news is that Bitcoin is close to the $18,000 mark, and if it shoots over, we can expect it to go higher.
Of course, that depends on macro-economic factors including the US inflation report. The last one was better than expected, and if that trend continues and the Russia-Ukraine war ends soon, we can expect a bull’s market.