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Bitcoin hits $18 000 for the first time post-FTX bankruptcy

Bitcoin spiked to $18 000 for the first time since the exchange FTX slid into a chaotic bankruptcy last month, with the world’s largest digital currency also getting a boost from bets on a Federal Reserve downshift.

Binance Holdings Chief Executive Officer Changpeng Zhao said in a tweet on Wednesday, “things seem to have stabilized” and warned colleagues in a memo to expect tough months ahead explaining the industry for digital assets is going through “a historic moment” and that Binance is in a strong financial position and “will survive any crypto winter.”

“Crypto breathed a sigh of relief as outflows from Binance appear to have stabilized,” said Martha Reyes, head of research at BeQuant, crypto exchange and prime broker.

Last week, Binance released a proof of reserves report. The document, based on a snapshot review by accounting firm Mazars, showed the exchange having sufficient crypto assets to balance its total platform liabilities.

A second month of weaker-than-expected inflation data also boosted crypto alongside risk assets on the premise that would pave the way for slower Fed hikes.

The central bank is seen raising it benchmark rate Wednesday by 50 basis points following four consecutive 75 basis-point moves.

© 2022 Bloomberg L.P.

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