Bitcoin and Ethereum faced the brunt of the FTX-induced market crash that sent their prices tumbling south. Bitcoin fell to the $15,700 level reaching its November 2020 lows and Ethereum was on the brink of trading with three digits. The markets saw a bloodbath for four consecutive days from Monday to Thursday wiping nearly $200 billion worth of investments. However, Bitcoin, Ethereum, and the majority of altcoins were recovering at press time.
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Here’s Why Bitcoin & The Crypto Markets Are Up Today
Bitcoin, Ethereum, and the larger crypto market bounced back on Friday after the painful, dramatic, and brutal slump. While Bitcoin is up nearly 5%, Ethereum spiked 7%, and Solana, which lost 55% is up 32% today.
Bitcoin and the crypto markets are up today as they reacted positively to the CPI data which showed inflation at 7.7%. Nasdaq responded positively to the news and skyrocketed 808 points while Dow Jones catapulted 1,201 points. Around $1.8 trillion entered the US stock markets on Thursday.
The crypto markets go in tandem with the stock market and the equities pulled leading cryptos out of their misery. In addition, FTX reopened withdrawals on Thursday that brought some confidence to the markets, after halting it earlier this week.
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The markets spiked despite the ongoing SBF-FTX-Alameda saga that’s pushing its prices down into the abyss. However, investors are skeptical if the price spurt can hold for long as bullish momentum has been stunted throughout 2022.
Moreover, Friday’s price growth doesn’t suggest that a bull run is around the corner. The markets are firmly under the bearish grips and have more chances of heading south than north.
A series of job losses from Fortune 500 companies is ringing warning bells of an upcoming recession. While Friday’s price rise can be celebrated, the celebrations might not last for long.
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At press time, Bitcoin was trading at $17,289 and is up 5.5% in the 24 hours day trade. BTC is down 75% from its all-time high of $69,044, which it reached in November last year.