Bitcoin Nears $19,000 Price After FTX Asset Recovery


Bitcoin price briefly eclipsed $19,000 to hit a fresh 1-month high on Thursday. The increase came after lawyers for bankrupt cryptocurrency exchange FTX announced that they have recovered $5 billion in liquid assets. Ethereum, Binance Coin and Dogecoin also rose as crypto markets rallied Thursday morning following the announcement of the failed crypto exchange.




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Bitcoin jumped 7% on Thursday to briefly recapture its $19,000 level in the afternoon, but fell back to $18,850 after the stock market closed.

Bitcoin price rises, FTX assets rallied

During a court hearing on Wednesday, FTX attorneys overseeing the bankruptcy proceedings announced they had recovered $5 billion in cash, digital and other liquid assets. The assets can be used to help pay off the crypto exchange’s 9 million creditors. The total owed to creditors is still unclear, but initial bankruptcy filings put the amount between $1 billion and $10 billion.

On Thursday, former FTX CEO Sam Bankman-Fried detailed his version of the cryptocurrency exchange’s insolvency in a lengthy post on Substack. “I did not steal funds, and I certainly did not keep billions. Almost all of my assets were and still are usable to support FTX clients,” he wrote.

Bankman-Fried claims that FTX US, the exchange’s US outfit, had $352 million in cash beyond client balances on its sheet when it resigned. SBF continues to assert that FTX US is, and always has been, solvent. And, “even now, I think if FTX International were to restart, there would be a real chance that customers would recover substantially.”

Overall, Bankman-Fried (FTX sister crypto exchange) believes that Alameda borrowed $8 billion in 2021 with only $7 billion in available liquidity and failed to sufficiently hedge exposure as broader dips hit the market. . However, he still blames Binance CEO Changpeng Zhao for “an extreme, swift, and targeted collapse,” which rendered Alameda insolvent and then spilled over into FTX. Still, SBF did not address the executives’ generous personal spending or lack of oversight.

Attorney John Ray III, who is serving as FTX’s CEO and overseeing the bankruptcy, has not been an ally of SBF. Ray had previously been critical of FTX’s operations, saying: “Never in my career have I seen such an utter failure of corporate controls at every level of an organization, from a lack of financial statements to a complete failure of any internal control or governance. “. Last week, Bankman-Fried pleaded not guilty to a series of criminal charges against him.

Bitcoin price chart

It marks the first time that BTC has broken above $19,000 since the crash of crypto exchange FTX in early November. And the world’s largest cryptocurrency has struggled to reach $18,000 in the months since.

With the price of Bitcoin back above $18,200, roughly 13% of the circulating supply has returned to profit, according to data from on-chain analytics firm Glassnode compiled by CoinTelegraph.

cryptocurrency price action

Most cryptocurrencies also rallied on the day the Bitcoin price rallied. Ethereum jumped 6.5% to hit $1,420, the highest level for the #2 cryptocurrency since the FTX crash. Binance’s BNB token rose 2.8% to $285 for the first time since mid-December. And the popular altcoin Dogecoin was up about 4.3% to 8 cents for the first time in a month.

You can follow Harrison Miller for more stock news and updates on Twitter. @IBD_Harrison

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