After an arduous 18-month journey, Bitcoin has officially recovered to its pre-Terra stablecoin crash levels, crossing back over the $37,000 threshold. This milestone comes almost exactly a year after the FTX bankruptcy filing dealt a final blow in the fallout from Terra’s demise.
Unlike past rallies, Bitcoin’s path to recovery was uneven amidst monetary tightening and increasing regulation. Still, the dominant cryptocurrency prevailed through volatile periods to regain lost ground.
Driving Bitcoin’s resurgence were narratives framing it as an inflation hedge and potential SEC approval of Bitcoin ETFs. However, some believe the optimism is overblown, predicting capital shifts rather than fresh inflows with ETFs.
Nevertheless, the recovery to its pre-crash price revives hopes for new heights, with Bitcoin proponents touting upcoming catalysts like 2023’s halving. Though still only halfway to its 2021 peak, hitting this target revives the narrative power and endurance of the largest cryptocurrency.
The TerraUSD and FTX debacles may have dealt steep blows, but Bitcoin has shown its staying power by overcoming bearish forces. While far from euphoric peaks, its plodding recovery reaffirms Bitcoin’s place as the crypto market leader.
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