Following the late 2022 crash of the cryptocurrency market, cryptocurrencies fell to the levels seen before the 2020-2021 rush that sent bitcoin to its all-time high of $66,953 on September 9, 2021.
The story for the past year was a lot different, however. After the pandemic, nations all around the world found themselves on the verge of a recession comparable to those found during wartime.
That eventually led to economies like the United States, United Kingdom, European Union, and Australia to significantly raise their interest rates, in order to try and tame inflation.
Furthermore, these actions proved themselves to be the cataclysm for one of the harshest years for riskier assets like bitcoin and stocks. The reason for that is simple, with interests higher, borrowing money from the government and financial institutions becomes more difficult. That eventually leads to less liquidity in markets like stock and crypto.
Throughout that year, bitcoin was able to hold on to the $20,000 margin almost until the end. However, another major episode ultimately led the world’s largest cryptocurrency by market capitalization to fall to even lower levels.
Of course, we’re talking about the FTX meltdown. The series of catastrophic events that led to Sam Bankman-Fried’s imprisonment was also the cataclysm for BTC to reach $15,810 at its lowest point.
Bitcoin Coming Back To Pre-FTX Price
The fact that bitcoin just surpassed the $20,000 mark is in its own right an incredible feat for the cryptocurrency space.
Following the report of the consumer price index indicating that the American battle against inflation is beginning to show results, the market sentiment for cryptocurrencies is beginning to show incredible optimism.
As of right now, bitcoin consolidated at around the $20,800 mark, according to CoinMarketCap. Around the same price it had before the FTX collapse, indicating the cryptocurrency market is now finally beginning to put the SBF debacle in the past.
In the eventuality that the U.S. finally begins to cut interest rates, the crypto market as a whole has a very good chance of having a great 2023.