Bitcoin rebounds more than 42% after FTX collapse

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Bitcoin rebounds more than 42% after FTX collapse

After the collapse of crypto exchange FTX last November, Bitcoin has rebounded, climbing more than 42%.

In the weeks leading up to and after the fall, bitcoin dipped below the $16,000 level, according to Dow Jones Market Data Group.

Bitcoin notched its highest point in almost two months when it peaked at $28,933.51. The digital currency has been up five of the past six days and over 68% higher since January, but remains well off its all-time high of $67,802.30 in late 2021.

The criminal trial of FTX's founder, Sam Bankman-Fried, began on Tuesday. The former FTX CEO faces seven federal charges of fraud and conspiracy related to the collapse of the crypto exchange, and faces up to 110 years in prison if found guilty of all charges.

Bitcoin has been above the $30,000 plateau in April, and the $31,000 hurdle was helped off by a new exchange backed by Fidelity and Charles Schwab. EDX Markets, the first-of-its-kind digital asset market, is backed by Citadel Securities, Sequoia Capital and Virtu Financial. Over the summer, firms such as Cathie Wood's ARK Invest and BlackRock, with $9.5 billion in assets, applied to the SEC for a spot bitcoin ETF, even though the U.S. regulatory agency has yet to approve a pure bitcoin ETF.

The SEC has also turned Grayscale away and is suing the Wall Street watchdog over the rebuttal, while Fidelity and the CBOE have also been shot down by regulators. In a report this month, analysts at Bernstein said a Bitcoin ETF could open up to $600 billion in new demand.

In July, Standard Chartered analysts said bitcoin could reach $50,000 this year and $120,000 by the end of 2024 as crypto miners begin stockpiling the digital asset in the wake of inflation.

The British bank previously forecast bitcoin would reach the 100,000 mark by the end of the year, but now Standard Chartered analyst Geoff Kendrick said there is a 20% 'upside' to the original forecast.

The original version of this story incorrectly identified the launch date for EDX Markets as June 20.