Bitcoin Surpasses $20,000 Mark

Recovery to Pre-FTX Bankruptcy Levels

[Asia Economy Reporter Lee Ji-eun] As inflation slows down and investor sentiment revives, Bitcoin has recovered to the price level before the cryptocurrency exchange FTX filed for bankruptcy protection.

According to CoinMarketCap, a cryptocurrency market tracking site, as of 3:37 PM Eastern Time on the 17th, Bitcoin was trading at $21,360 per coin. During the day, Bitcoin rose to as high as $21,594, marking its highest level since September 13 of last year. This is similar to the level seen in early November when FTX's liquidity crisis became known.

According to Bloomberg, Bitcoin has risen for 13 consecutive days, increasing by more than 30% so far this year. This is the longest continuous rise since November 2013. Bitcoin, which had maintained the $16,000 level for two months, began to climb after the U.S. Consumer Price Index (CPI) recorded 6.5% on the 12th, the smallest increase in 14 months since October 2021. Ethereum also surged more than 44% over seven days, trading at $1,579 as of the 17th.

Market research firm Bespoke Investment Group stated, "Bitcoin has astronomically surpassed the 50-day moving average and is also above the 200-day moving average," adding, "It has fully recovered the losses that plunged after the FTX bankruptcy."

As Bitcoin's price surged sharply in a short period, concerns have also been raised. There is a view that funds are excessively flowing into Bitcoin. The 14-day average relative strength index (RSI) of Bitcoin, used in technical analysis, recorded 91 days and exceeded 70, which indicates overbought conditions.

Experts analyzed that the reason for Bitcoin's price increase is the easing of investor sentiment. Adam Faying, Chief Risk Officer (CRO) of cryptocurrency trading firm B2C, said, "The rapid rise in Bitcoin's price appears to be the result of increased short-term liquidity."

Additionally, the expert explained that the S&P 500 index and Nasdaq 100 index rising by 4% and 6%, respectively, this year also contributed to the rebound in cryptocurrency prices.

This content was produced with the assistance of AI translation services.