Bitcoin Has Increased By Almost 30% This Year
The price of bitcoin is rising once again after a difficult 2022. The price of the digital currency has increased by about 30% since the beginning of January, peaking on Wednesday at roughly $21,439 per coin.
Bitcoin was trading at $16,500 on New Year’s Day, and has been trading below $17,000 for the most of the time since cryptocurrency business FTX’s stunning fall in mid-November. However, the main digital asset was trading at over $21,439 on Wednesday, a rise of roughly 30%. During the same time span, Ethereum, the second-largest cryptocurrency, surged by more than 30%.
Furthermore, for the first time since FTX’s demise, the total market value of all cryptocurrencies surpassed $1 trillion.
“Bitcoin has been in a decline for over a year, which is typical for a bear market in cryptocurrencies,” Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, said in an email to CNBC on Thursday morning.
Ayyar added, “Many negative events have occurred over the past year, and if one examines the price reaction to these events, it has generally been declining less and less, indicating that the market is accepting the news quite well, sell pressure is being absorbed, and we’re therefore entering an accumulation phase.”
Another interpretation is that the market believes the worst is over for cryptocurrencies and that the majority of bad news has already been factored into prices.
Binance CEO Changpeng Zhao told CNBC on Wednesday that the exchange expects to grow employment by 15% to 30% by 2023, in contrast to rival exchanges that have eliminated staff.
Binance, which had previously designated $1 billion for a fund aimed at shoring up the sector after the demise of FTX, is now troubled by doubts over the adequacy of its reserves. Mazars, the auditor working on the company’s so-called proof of reserves, ceased all crypto-related work in December.
Binance asserts that it has more assets than liabilities.
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