Bitcoin rose to its highest level in 18 months before Terra collapsed.

Nov 10
After more than 18 months, Bitcoin has finally recovered to its previous trading level before the incident that caused the most recent cryptocurrency crash.

The leading cryptocurrency gained 6.7% to $37,973 on Thursday, although it later pared gains to reach its highest point since May 5, 2022—the day before stablecoin TerraUSD failed and precipitated a string of unfortunate events affecting the whole cryptocurrency market.

Almost exactly a year after the slump peaked with the bankruptcy of Sam Bankman-Fried's FTX exchange, Bitcoin made a complete comeback from this debacle.
According to Markus Thielen, head of research at Matrixport, "Crypto traders have officially shed those psychological scars with Bitcoin trading above the level where the Terra stablecoin collapsed once again."

In contrast to past boom cycles, this year's recovery for Bitcoin has been erratic, with brief periods of high volatility interspersed with strong rises. To reach this point, the cryptocurrency had to weather the biggest monetary tightening in four decades from the Federal Reserve. in addition to stricter industry rules.

According to correlations observed in recent months, investors are beginning to perceive bitcoin as a risk-free asset akin to gold, according to Jaime Baeza, managing partner at cryptocurrency hedge fund AnB Investments.

The extraordinary resurgence of cryptocurrencies has been explained by several narratives, including those that portray Bitcoin as an inflation hedge, a haven from the US banking crisis in March, and, most recently, Bitcoin for the general public in the form of exchange-traded funds that the Securities Exchange Commission and US exchanges may soon approve.

The SEC may potentially issue approval orders within a brief window of at least eight days, as per a note from Bloomberg Intelligence analysts James Seyfarth and Eric Balchunas on Thursday. They stated, "We still believe there is a 90% chance of approval by January 10th, even if approvals do not come this month."

The token has increased by more than 120% this year due to optimism about possible regulatory clearance following more than 10 years of conversations. Caroline Mauron, co-founder of Orbit Markets, a supplier of liquidity for digital asset futures, expects ongoing interest in wagering on a further Bitcoin gain. In contrast, worldwide stock prices increased by a meager 10% throughout that time.

Even though Bitcoin is still a long way from reaching its peak of approximately $69,000 during the 2021 crypto-mania, its supporters are already pushing new ideas regarding its staying power.

Nevertheless, Nikolaos Panigirtzoglou, an analyst at JPMorgan, claimed that the Bitcoin surge seemed exaggerated. As for the cryptocurrency market, JPMorgan believes it is more likely that existing capital will leave existing bitcoin products like Grayscale's trust fund and bitcoin futures ETFs than that new capital will enter the market to participate in recently approved ETFs.

In the meantime, speculation that BlackRock Inc. is getting ready to apply to establish an exchange-traded fund with a concentration on the second-largest cryptocurrency saw ether's price rise.

Following his conviction last week for one of the worst financial scams in American history, Bankman-Fried is currently awaiting a sentence that could land him in prison for many years. Do Kwon, the creator of the doomed TerraUSD, is wanted by US and South Korean authorities on fraud-related accusations after spending time in a Montenegrin jail.

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