The price of the virtual currency got a small bounce this week as investors hoped that the worst of the crisis is behind them.
By Friday, it had risen about 9% for the week and is on track for its best week since October. The price went from a low of $17,000 to a high of $22,478.37 in a single day.
Around 11:30 a.m. it was more than 1% higher at $21,903.00. According to coinmetrics.
Felix said that a lot of the insolvencies are behind them. Three Arrows filing for bankruptcy was the last one.
Three Arrows, a hedge fund focused on cryptocurrencies, filed for Chapter 11 last week after a sharp decline in digital currency prices.
There aren't any bigger, more impactful dominoes left to fall. He believes that the market could double if there is no bad news or insolvencies.
It would only bring the price back up to April levels. Its November all-time high is 70% below its current level.
After a major capitulation going back to May when Terra's stable coin project crumbled, the weekly rise of bitcoin is a much needed short term relief rally. Digital currency prices have fallen and so have the firms that lend to them.
Relief to investors is provided by having an unofficial lender of last resort like Sam Bankman- Fried. The CEO of FTX said this week that his company has a few billion on hand to help struggling firms.
There is a resistance level to watch for. He said it should rise to $28,000 if it breaks above that threshold.
The Federal Reserve is expected to raise their interest rate by 50 or 75 basis points at their July meeting, according to Ryan Shea. Increasing signs that the U.S. economy is slowing more than policymakers think is making investors view the Fed with more circumspection.
They are looking through the hikes and instead are focused on the expectation that the Fed will capitulate, which is a positive scenario for risk assets in general.
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