Cryptocurrency bulls extend one of the most unlikely rallies of the year so far, pushing Bitcoin above $21,000 for the second day. That means the digital currency has now recouped all its losses since the spectacular collapse of FTX in November.
The rising tide has lifted most of the crypto boats, the DealBook newsletter reports. Even some knocked-down tokens — including FTT, the internal token of bankrupt exchange FTX — have bounced back as investors bet the Federal Reserve will slow its rate hikes, sparking a broad rally in risky assets. Shares in Coinbase, the publicly traded crypto exchange that laid off employees and cut costs, gained in the New York market; it is up more than 30 percent in the past week.
But crypto analysts are divided on whether the rally is sustainable; by Wednesday afternoon, Bitcoin had fallen below $21,000. Skeptics argue that the fundamentals for a long-term increase are lacking, making the recent jump a risky bet for investors.
The crypto rally comes as attorneys for Sullivan & Cromwell, the law firm advising on FTX’s multibillion-dollar bankruptcy, revealed that the company’s assets were worth approximately $5.5 billion, including $1.7 billion in cash and $3. 5 billion in crypto assets. That makes this broader rally important for FTX creditors – if it continues.
