[Bitcoin Now] Recovery Trend Despite FTX Aftershock... Approaching $17,000

[Image source=AP Yonhap News]

[Asia Economy Reporter Myung-hwan Lee] Bitcoin prices are rising amid the aftermath of the FTX bankruptcy filing incident, approaching the $17,000 level.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:31 AM on the 30th, Bitcoin was priced at $16,855 (approximately 22.35 million KRW), up 4.12% from the previous day.

The day before, Bitcoin prices slightly declined following news that cryptocurrency lending firm BlockFi filed for bankruptcy protection on the 28th (local time). BlockFi faced a crisis due to the impact of the FTX bankruptcy incident. BlockFi was a company closely connected with FTX, having received a credit line loan worth $400 million (approximately 530 billion KRW) from FTX and its affiliate Alameda Research.

However, on this day, bargain buying emerged, boosting the upward trend. Nevertheless, concerns remain in the market that Bitcoin prices could fall at any time. Edward Moya, Senior Market Analyst at global investment firm OANDA, said despite Bitcoin's price rebound, "The price differences in other cryptocurrency derivatives, potential bankruptcy risks of some cryptocurrency exchanges, and risks due to recession concerns are increasing the downside risk," adding, "This is not a favorable environment to buy the dip in cryptocurrencies."

Cryptocurrency investor sentiment is also recovering. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, rose by 3 points from the previous day to 29 points (Fear) on this day. Alternative's Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investment, to near 100 points, indicating optimism.