Cryptocurrencies are bouncing back on Tuesday after turning around mid-session on Monday. Bitcoin (BTC) has risen nearly 1.5% in the last 24 hours and is approaching $16,400, while Ethereum (ETH) has increased nearly 3% in the last day and is trying to conquer $1,200.
The main news in the crypto sphere has been the bankruptcy declaration of BlockFi, one of the companies most affected by the bankruptcy of FTX. As indicated by the company in documents filed with the New Jersey Bankruptcy Court, BlockFi has $256.9 million in cash and has initiated an internal plan to “significantly reduce expenses, including labor”.
Last November 14, BlockFi denied reports from ‘The Wall Street Journal’ that the company was considering filing for bankruptcy, although it acknowledged a “significant exposure” to Sam Bankman-Fried’s ill-fated ‘exchange’.
It is worth remembering that BlockFi was one of several companies that signed agreements to be rescued by FTX during the summer after the fall of ‘cryptos’ prices. According to ‘WSJ’, Zac Prince’s firm obtained a $400 million revolving credit facility in a deal that also gave FTX an option to buy the company. According to the New York daily, the company drew down virtually the entire credit facility and extended millions of dollars in loans partially secured by FTX’s FTT tokens.
This episode is the latest in the chain of events that have shaken the market in recent weeks and which only serve to highlight the pressure to which digital assets are exposed, explained Craig Erlam, senior market analyst at Oanda. The expert believes that the market’s focus is now on detecting “similar vulnerabilities” to those seen in FTX, BlockFi or Genesis, among others.
“The fact that risk appetite is weak today doesn’t help either. Although it looks like Bitcoin is trying to form a base around $15,500-$17,000, that may be easier said than done in this environment,” Erlam added.
FJavier Molina, senior market analyst at eToro, indicated that Bitcoin has “lower volatility and lower ‘spot’ trading volume.” “Only overcoming the $17,500 area would make us think of a bullish rebound with a target of $20,000,” he pointed out.
On the other hand, the lows marked at $15,500 represent “the last valid support“. “Losing this zone opens the way to $13,000. We continue to warn to maximize risk control,” Molina added.
Similar rises can be observed in the rest of the market. Ripple (XRP) increases 2.6%, while Dogecoin (DOGE) rallies strongly, almost 8%, following the latest rumors surrounding Twitter. Litecoin (LTC) rises 6% and is trying to consolidate the $76 level. Meanwhile, Cardano (ADA), Polygon (MATIC), Polkadot (DOT) and Solana (SOL), among other cryptos, increase 3%.
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