- Cryptocurrencies have staged a fightback since FTX collapsed 14 months ago.
- Bitcoin has soared 150%, while other tokens like ether and solana have also racked up huge gains.
- The rally has led to digital assets’ total market cap doubling to over $1.6 trillion.
When FTX imploded in November 2022, it felt like crypto had hit rock bottom.
Bitcoin was mired in a long-term slump and trading 75% below its all-time high, and financial watchdogs were preparing to start cracking down on digital assets to make sure that nothing like the blow-up of Sam Bankman-Fried’s business empire could ever happen again.
Fourteen months later, cryptocurrencies have returned to form in a stunning comeback – capped last week by the Securities and Exchange Commission's approval of 11 spot bitcoin ETFs, after months of speculation.
Excitement in the run-up to the SEC's decision, better-than-expected US growth, and investors' belief that the Federal Reserve will soon start cutting interest rates have all powered the large-cap token higher. It's currently priced at just over $41,000, 150% higher than the level it traded at on November 11, 2022 – the day FTX filed for bankruptcy.
Crypto bulls believe bitcoin's stellar run could last a while longer, thanks to the SEC. Standard Chartered and Fundstrat perma-bull Tom Lee are among the names who believe the financial watchdog's approval of ETFs will help it to surge past $100,000 for the first time, while other analysts called its decision a "watershed moment" and a "'game changer' for crypto."
The large-cap token isn't the only cryptocurrency that's rebounded in the aftermath of the FTX fiasco.
Ether, the native token of the ethereum blockchain, has climbed 94% to nearly $2,500 as BlackRock tries to launch a separate spot ETF tracking its price, while altcoins solana and avalanche have each racked up triple-digit gains.
That cross-token surge has led to the overall valuation of the digital-currency sector doubling since November 2022, with the industry's total market capitalization rising from $740 billion to $1.6 trillion as of Thursday. Bitcoin's market cap alone has jumped from $400 billion to $840 billion.
It should be no surprise that the combination of that stellar comeback and the SEC's decision to open crypto up to institutional investors for the first time has led to more online buzz about bitcoin and other tokens.
The number of people searching for bitcoin has jumped by around 50% this month, according to data from The Block and Google Trends – a return to form after interest in the once-volatile asset died down in the wake of FTX's failure.
Just over a year after Bankman-Fried's spectacular fall from grace, crypto has bounced back – in a rebound that's got both the traditional finance world and retail investors chattering about digital assets again.