Bitcoin Is Heading To Its Best Week Since October, As Investors Regain Hope

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Bullish Market - Hans Eiskonen via Unsplash
Bullish Market - Hans Eiskonen via Unsplash

The price of bitcoin had a small respite this week as investors hoped that the worst of the crypto liquidity crisis is over.

By Friday, bitcoin had surged about 11% for the week and is on track for its best week since October, according to Coin Metrics. The price soared as high as $22,478.37 at one point, climbing back from a low of about $17,000 in June.

It last traded 1% higher on the day at $21,903.00, around 11:30 a.m. ET, according to CoinMetrics.

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“A lot of the insolvencies and forced unwinding from a volume perspective are behind us,” said Felix Hartmann, managing partner of Hartmann Capital. “Three Arrows filing for bankruptcy was kind of the final pin in that.”

Three Arrows, a crypto-focused hedge fund, filed for bankruptcy last week after a dramatic plunge in cryptocurrency prices exposed a liquidity crisis at the firm.

The market contagion could spread into smaller crypto exchanges or funds, Hartmann added, but there aren’t any bigger, more impactful dominoes left to fall. If the crypto industry can go a month without bad news or insolvencies, he said, it’s “very likely” that that market could double.

Still, doing so would only lift bitcoin’s price back up to April levels. It’s currently about 70% below its November all-time high of $68,982.20.