Following the demise of FTX, rising stock prices have given new life to cryptocurrencies.
Bitcoin increased 7.2% on Thursday to trade at $18,830, the most since early November when the first signs of instability on the FTX exchange resulted in bankruptcy and criminal charges that destroyed the cryptocurrency business.
longest cryptocurrency winning streak since July 2020
According to Jake Gordon of Bespoke Investment Group, “It seems to me that bitcoin is increasing in tandem with risky stocks, and the next few days will be a strong test for it if it breaches the December highs.”
Wall Street sees profits as a result of a shift in the mindset of investors, who are raising tech stocks and other risky assets rather than forecasting a rapid comeback of the crypto frenzy.
“Risk aversion in the markets has benefited cryptocurrency thus far this year. According to Chris Gaffney, President of Global Markets at TIAA Bank, “Bitcoin trades more on risk considerations than on any fundamentals.”