Bitcoin Hits a High not Seen in Two Weeks “The Effects of FTX are Still Going on”

On the market for virtual assets, Bitcoin went up to $17,000, which is the highest it has been in two weeks. However, experts in cryptocurrencies warned that the effects of FTX are still being felt.

Experts in cryptocurrencies told Market Insider on January 1 (local time) that the effects of the FTX crash have not yet been fully seen.

Messari says that Bitcoin is up 2.76 percent and Ethereum is up 8.90 percent over the last week, even though bad news keeps coming out about the industry.

But Sam Bankman-FTX Fried’s fell quickly earlier this month, and most people agree that the risk of a chain reaction is still there.

After the FTX crisis, BlockFi, a company that lent out cryptocurrency, filed for bankruptcy. It is also known that Genesis Trading hired a restructuring expert.

The founder of Cubic Analytics, Caleb Franzen, said, “We expect strong short-term gains, but there are still headwinds in both traditional markets and cryptocurrencies.”

“Even if the US Federal Reserve (Fed) slows down its rate hikes, financial conditions will continue to tighten,” Franzen said, fearing that the drop in liquidity would continue to expose companies with too much debt.

Yaroslav Shakula, the CEO of Yard Hub, said that Bitcoin could hit rock bottom soon because it has survived the recent BlockFi problem.

But Shakula said, “These upward revisions could turn bearish again if the “domino effect” from FTX affects some other large cryptocurrency exchanges or funds.”

Dennis Jarvis, the CEO of Bitcoin.com, also said that the problem isn’t over just because the industry isn’t filing for bankruptcy anymore.

Genesys has $175 million stuck in its FTX account, and its lending partner Gemini has stopped returning customer funds through its interest payment program.