soared past $23,000 on Saturday, its highest level since September, as the crypto currency market recovered some ground in early 2023.
The rally came despite news on Thursday that Genesis Global Capital had filed for Chapter 11 bankruptcy protection. Genesis is owned by Digital Currency Group. The company has been caught up in the fallout from the collapses of crypto hedge fund Three Arrows Capital last spring and, more recently, crypto exchange FTX.
See also: Bitcoin just recovered from FTX’s implosion. Could a Genesis bankruptcy push it to new low?
Bitcoin has climbed 12% in the past seven days and is up 35% for the year. Ether
has jumped 13% over the past week and is up 38% since Dec. 31.
Crypto-related stocks also benefited from the rally Friday: Exchange Coinbase
rose while bitcoin miner Marathon Digital Holdings
Some traders were skeptical of the rally though.
“Bitcoin seems to be trading along with the Nasdaq and risk assets again, after the past months of decoupling,” Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs told CNBC on Friday.
“This is good news for crypto investors in that if inflation is falling, and the Fed is closer to the end than the beginning of economic tightening, risk assets will catch a breath of fresh air and perhaps lure investors back in.”
Edward Moya, senior market analyst at Oanda, said in a Friday note that if more Federal Reserve interest rate hikes happen beyond the Fed’s March meeting, “risky assets broadly, including crypto, could be vulnerable to major selling pressure.”