Bitcoin showed signs of recovery after a disastrous week in which over US$1.3tn was wiped from the cryptocurrency markets. Having fallen over 27% following the collapse of FTX – formerly the world’s second-largest digital asset exchange – bitcoin managed a healthy 10% recovery on Thursday, and is today changing hands at US$17,300.
Though still US$5,000 down from its pre-crash position, there is at least some evidence of a sharp recovery.
Bitcoin was largely unaffected by the FTX crash, and the currency remains highly liquid, so this week’s events shone a light on the efficacy of crypto contagion in spreading through the market.
Ethereum is also showing strong evidence of a recovery. Having lost 35% of its market value ths week, the second-largest cryptocurrency bounced back nearly 20% to change hands for US$1,270 as of Friday morning.