Cryptocurrency bulls are extending one of the most unlikely rallies so far this year, pushing bitcoin above $21,000 for a second day in a row. This means that the digital currency has now recovered all its losses since the FTX crash in November.
The rising tide has lifted most cryptocurrency boats, according to the DealBook newsletter. Even some hard-hit tokens — including FTT, the internal token of bankrupt exchange FTX — have rallied as investors bet the Federal Reserve will slow down the pace of rate hikes, leading to a broad rally in risk assets. Shares of publicly traded cryptocurrency exchange Coinbase, which has been cutting staff and cutting costs, opened higher in New York; up more than 30% in the past week.
but cryptocurrency analysts be separated on whether the rally is sustainable. Skeptics argue that the absence of fundamentals for a long-term rally makes the recent rally a risky bet for investors.
Lawyers for Sullivan & Cromwell, the law firm that advised FTX on its multibillion-dollar bankruptcy, revealed that the company’s assets are worth approximately $5.5 billion, including $1.7 billion in cash and $3.5 billion in crypto assets. That makes this broader rally significant for FTX creditors — if it lasts.