One year ago, FTX filed for bankruptcy on November 11, 2022. Since then, the price of Bitcoin has more than doubled in price, reaching an 18-month high of just under $37,000. This puts Bitcoin’s gains in perspective, as it has outperformed both the S&P 500 and the “Magnificent Seven” Big Tech stocks, which have increased 95% year-to-date.
Speculation of the US Securities and Exchange Commission potentially approving a spot Bitcoin exchange-traded fund (ETF) has powered Bitcoin’s comeback. On Wednesday, Bloomberg Intelligence analysts estimated there was a 90% chance that such a vehicle would be approved before January 10. This follows a nightmarish 2022 for the entire digital asset space, with the collapse of FTX, Terra, Celsius Network, and Three Arrows Capital.
Low supply also has driven the cryptocurrency’s rally, with long-term investors holding onto their stashes in anticipation of higher prices. Additionally, traders are gearing up for a so-called “halving” event expected to take place mid-2024, which could push prices beyond $100,000.
Big banks have also issued bullish price predictions in recent months, with Standard Chartered predicting a surge to $120,000 and Bernstein sharing a $150,000 price target.
The FTX fiasco took its latest turn earlier this month when Bankman-Fried was found guilty of seven counts of fraud, which could land the exchange’s founder up to 110 years in prison. Despite this, Bitcoin’s price has steadily risen, showing that even one of the biggest financial frauds in US history hasn’t killed the cryptocurrency.
