The token is ahead 1.96% to $21,236 on Tuesday.
Bitcoin is trading at levels not seen since the aftermath of the Sam Bankman-Fried exchange collapse. The industry’s total market capitalization hit $1 trillion again over the weekend amid signs of bottoming out.
Elsewhere, altcoins are also trending higher. Solana has skyrocketed 44% in the past month following the launch of a solana-based meme token called Bonk Inu. The Polygon token surged 19% last week on news of an upcoming software update.
Markets still have a long road to recovery amid a long cryptocurrency bear market. Decades of high inflation, along with a slew of bankruptcy filings by major industry players like FTX, Celsius and Three Arrows Capital last year have also continued to weigh on investor confidence.
Despite recent gains, bitcoin is still down 68% from its all-time high in November 2021. However, industry executives seem optimistic that market jitters will subside.
“I think we will see less volatility in the price of Bitcoin over the next 6 months just because traders are probably spooked by the recent events of the FTX crash,” Kadan Stadelmann, chief technology officer at the chain of supply chain solutions provider, told Insider. Komodo blocks. year.
Stadelmann added: “FTX celebrated [zero] BTC, so we shouldn’t see any selloff events directly from that. However, large institutions that held a portion of their funds in FTX could be forced to sell their assets elsewhere, which could include BTC.”
Danny Chong, co-founder of tokenized asset management protocol Tranchess, says that markets could worsen if there is stricter crypto regulation or if macroeconomic conditions become less favorable for investors.
“This could be a further blow to already reduced confidence levels in the industry,” Chong told Insider earlier this year. “Coupled with bearish global market conditions such as persistently high inflation, if such challenges are faced this year within the industry, this could have a negative impact on the crypto market.”
Last week, CPI data for December indicated that inflationary pressures eased again, giving Federal Reserve officials some leeway to rein in interest rate hikes.
