17 Jan 2023
A great recovery and a hated rallyAfter experiencing a seven-day return of 23% fueled by a substantial short squeeze, BTC has recovered to pre-FTX levels. We anticipate that volatility will subside, partly due to developments in Binance's perp.
he last seven days have been remarkably strong and lively in crypto. BTC has seen a massive 23% gain and a growth in the market dominance of 2.2 percentage points over the last week as BTC leads the market recovery. A positive reaction to the Thursday CPI print of -0.1% was the primary catalyst behind the surge. Still, BTC faced strength also before the CPI release, seeing 13 green trading days in the first 16 trading days of the year amidst falling correlations to U.S. equities. BTC has shown resilience and has recovered to prices from before the FTX collapse, a promising development.