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HomeNewsBitcoin (BTC) briefly tops $17,000 for the primary time in two weeks

Bitcoin (BTC) briefly tops $17,000 for the primary time in two weeks


Greater than $1.3 trillion has been wiped off the cryptocurrency market to date in 2022 because the fallout from the FTX collapse continues to weigh on investor confidence.

CFOTO | Future Publishing | Getty Photographs

Bitcoin on Wednesday rose to a three-week excessive as buyers continued to weigh the fallout from the collapse of cryptocurrency change FTX.

However one analyst warned that the bounce is probably going only a bear market rally and wouldn’t be sustained.

Bitcoin rose as excessive as $17,075, passing the $17,000 degree or the primary time in two weeks and touching its highest degree since Nov. 8, in line with Coin Metrics. The most important cryptocurrency by market cap was final buying and selling 2% larger at $16,825.01.

Different digital cash additionally rose, together with ether, which was final larger by 3.5% at $1,264.16.

Vijay Ayyar, vp of company improvement and worldwide at crypto change Luno, stated the transfer larger was possible a results of “over leveraged shorts protecting.”

Somebody who shorts an asset borrows a few of that asset, sells it at the next value then buys it again at a cheaper price and banks the revenue from that. A brief protecting is when a dealer buys the asset again on the cheaper price. That may trigger the value of that asset to maneuver larger.

Ayyar stated the value of bitcoin has “hit resistance” at $17,000 and is more likely to go decrease from there.

“That is only a bearish retest,” Ayyar stated.

Investor confidence in cryptocurrencies has been hammered after Sam Bankman-Fried’s change FTX collapsed and filed for chapter this month, sending shockwaves by your entire trade.

Contagion from the fallout is spreading. Crypto lender and change BlockFi filed for chapter because of publicity to FTX.

Greater than $1.3 trillion of worth has been wiped off the cryptocurrency market this yr, sparked by the failure of the algorithmic stablecoin terraUSD in Might and implosion of hedge fund Three Arrows Capital. The FTX collapse has worsened the state of affairs.

Merchants will even be carefully watching the contents of a speech by U.S. Federal Reserve Chair Jay Powell on the Brookings Establishment on Wednesday for clues concerning the central financial institution’s rate of interest plans. If the market thinks the Fed will gradual the tempo of fee hikes, it might support threat property similar to shares and bitcoin.

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