Bitcoin surges over 28% in a week as the ongoing banking crisis and potential Federal Reserve interest rate increase drive investors towards alternative assets, with many seeking Bitcoin as a safe haven against traditional financial institutions.
Bitcoin network sees a surge in new wallet adoption, on-chain proxies for demand are trending positively, and most of the indicators monitored by Glassnode’s “Recovering from a Bitcoin Bear” dashboard are flashing green, which historically is a strong bullish sign for the market.
There was a record-breaking amount of money taken out of digital asset investment products, which totaled $255 million. This is the highest weekly outflow ever seen in the digital asset investment industry, and it represents 1% of the total assets under management that left the space.
Despite recent banking turmoil with US bank stocks battered, crypto prices have been soaring, with Bitcoin bouncing back above $20,000, likely due to reassurance provided by the FDIC’s move to sell SVB assets and a reversal of net inflows onto exchanges suggesting a potential end to the recent sell-off period, while the SHA-256 hash rate is the highest it has ever been, indicating increased network adoption and security.
TeraWulf, a company that mines Bitcoin, built a new facility in Pennsylvania that uses nuclear power to operate. This is the first time in the United States that a mining facility will run only on nuclear power.
The crypto community has been grappling with the closure of FTX and its associated crypto firms for the last week, and ever since that time, the subject of proof-of-reserves has gained attention. The fact that cryptocurrency fans have pulled significant amounts of bitcoin and ethereum off centralized trading platforms is another bright spot in the disaster. Cryptoquant.com’s seven-day data show that since November 7, 2022, exchanges have eliminated more than $3.4 billion in bitcoin.
Following reports that Binance will buy Sam Bankman-crypto Fried’s exchange, FTX’s token fell about 80%.
According to CoinGecko statistics, FTT has lost 78% of its value in the last 24 hours, falling from about $22 to $4.87.
Tesla is still one of the biggest corporate Bitcoin holders, despite the bear market and Twitter war.
According to documents released by the electric car manufacturer ahead of its third-quarter investor relations call, Tesla’s Bitcoin holdings have not changed since the second quarter of 2022.
A rally in Bitcoin is slowing down as investors wait for US inflation data and keep an eye on a significant Ethereum blockchain upgrade, both of which have the potential to increase market volatility.
As the U.S. dollar fell broadly and markets found reasons to be happy at the end of a gloomy week, bitcoin surged past the $20,000 barrier and was eyeing its best day in six weeks on Friday.
