The crypto markets are pushing back up after reaching record lows in the last few days. Bitcoin (BTC) has managed to climb above the $17k level once again, while Ethereum (ETH) is hovering in the mid $1200s. Nonetheless, the community is still in a state of shock over the collapse of FTX, which was one of the largest and most popular exchanges out there.
After Bitcoin collapsed below the $16k level, many were worried that Ethereum would follow suit and drop below $1000. However, to the relief of the community, it was not the case. After Thursday’s CPI announcement, morale took a boost as inflation was reported to be less than anticipated. This was followed by a rally in the crypto markets.
Ethereum witnessed gains of up to 14% in the 24-hour chart. However, as of press time, it had fallen to 7.3%. ETH was the top token to face heavy liquidations as FTX had decided to sell its holdings to deploy as much capital as possible to curb its liquidity crunch. Solana (SOL) was the other token to face liquidation at the hands of FTX. SOL is down 42% in the weekly charts.
Will Ethereum’s rally continue?
The current rally is riding on the CPI numbers announced by the US Federal Reserve. Apart from that, there is nothing in the market to boost investor sentiment. Instead, there is so much FUD (fear, uncertainty, doubt) looming over the markets, that a rally in the first place is surprising. With that said, the current rally might fizzle out very soon. However, there is always the possibility that it might continue to rise as well.
The next couple of days will be very important for the crypto markets and community. As additional details regarding the balance sheets and inner workings of FTX are made public, sentiment will surely change. Therefore, it is too soon to tell if the current rally will stay strong.
At press time, Ethereum was trading at $1,277.34, up by 1.5% in the last hour.