[Bitcoin Now] Slight Rise Despite FTX Crisis... Additional Bankruptcy of Cryptocurrency Lending Firms

[Asia Economy Reporter Myunghwan Lee] The price of Bitcoin, the leading cryptocurrency that recently plummeted due to the FTX bankruptcy crisis, is showing a slight upward trend around the $16,000 level.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:04 AM on the 16th, the price of Bitcoin was recorded at $16,850 (approximately 22.31 million KRW), up 0.55% from the previous day.

After the FTX bankruptcy filing, Bitcoin's price fell from the low $20,000 range to the $16,000 range but is now showing a gradual recovery. Previously, FTX faced liquidity issues following allegations of poor financial structure and eventually filed for bankruptcy protection in a U.S. court. This triggered a chain reaction of crashes in the cryptocurrency market.

The rise in the U.S. stock market, which shows a correlation with Bitcoin prices, also appears to have had an impact. On the 15th (local time), the Nasdaq index, focused on technology stocks, closed at 11,358.41, up 1.45% (162.19 points) from the previous trading day. The Dow Jones Industrial Average rose 0.17% (56.22 points) to 33,592.92, and the S&P 500 index closed at 3,991.73, up 0.87% (34.48 points). The October Producer Price Index (PPI) rose 8.0% year-on-year, slowing the upward momentum. The PPI was below the securities market expectation of 8.3%.

However, there are assessments that further declines in Bitcoin prices could occur at any time. Edward Moya, Senior Market Analyst at global investment firm OANDA, said, "Bitcoin prices are showing resilience, but it is difficult to predict how far the fallout from the FTX bankruptcy will extend," adding, "If more cryptocurrency exchanges or related companies halt withdrawals or cease operations, it could put renewed pressure on cryptocurrencies."

In fact, the cryptocurrency lending company 'BlockFi' is reportedly preparing for bankruptcy. On the 15th (local time), the U.S. Wall Street Journal (WSJ) reported that the company is preparing to file for bankruptcy protection. Market analyst Moya said, "The possibility of BlockFi's bankruptcy will be the next hurdle for the cryptocurrency market," and analyzed, "Although BlockFi denied allegations that most of its assets were held at FTX, FTX's bankruptcy has affected the company."

Cryptocurrency investor sentiment showed similar figures to the previous day. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which expresses investor sentiment as an index, rose by 1 point from the previous day to 23 points (extreme fear). Alternative's Fear & Greed Index means that a score closer to 0 indicates extreme fear and pessimism about investment, while a score near 100 indicates optimism.