This marks an eight-day streak of increasing prices, a phenomenon not seen since July 2021 during the height of the pandemic. In the last seven days, the price of BTC has risen nearly 8%, with a 4.1% increase in the last 24 hours.
Hedge Funds Take a Hit as Bitcoin Price Soars
Hedge funds betting against Bitcoin, also known as shorting, have taken a significant loss as the cryptocurrency's price continues to rise. Moskovski Capital's CEO, Lex Moskovski, tweeted that $86 million worth of Bitcoin shorts were "getting smoked royally." BTC's price fell nearly 65% in 2022 but has since recovered strongly.
FTX's Bankruptcy and Recovery Could Impact Crypto Market
The crypto market faced challenges in 2022 with the bankruptcies and collapses of major players, including crypto exchange FTX. However, on Jan. 11, FTX announced it had recovered $5 billion in cash and cryptocurrencies, which it may sell to repay creditors. This move could create a bullish narrative for the market. Additionally, the exchange said it found many illiquid cryptocurrencies that may be harder to sell.