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Bitcoin Prices Retain Bulk Of Gains After Climbing To 5-Month High

Bitcoin prices have shown strength lately, managing to hold on to most of their recent gains after reaching their highest value since August over the weekend.

The world’s most valuable digital currency by market capitalization, which has generated countless headlines since coming into existence more than 13 years ago, reached $23,167.00 today, according to TradingView data.

At this point, it was down only slightly from the multimonth high of close to $23,300 that it attained on Saturday, when it was trading at its loftiest value since approximately August 19 on TradingView.

Upon reaching the aforementioned intraday high, the cryptocurrency was up roughly 40% since the start of the year and close to 50% since falling to less than $15,500 on TradingView in November.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

After trading within a reasonably tight range for several weeks, bitcoin prices have taken off, rising from roughly $16,500 at the start of this year to their recent five-month high, before proceeding to retain the majority of these latest gains.

The digital asset has managed to show this strength in the face of continued difficulty within the industry, as the FTX saga continues to play out and crypto lender Genesis Global Capital, LLC filed for Chapter 11 bankruptcy protection January 19.

The organization’s holding company, Genesis Global Holdco, LLC, announced this move in a press release, where it stated that it had taken this approach to “maximize value for all clients and stakeholders and strengthen its business for the future.”

Both Genesis Global Capital, LLC and Genesis Global Holdco, LLC exist under the umbrella of cryptocurrency firm Digital Currency Group.

Genesis Global Capital, which was scheduled to have its first bankruptcy hearing today, according to court filings, has generated significant visibility lately over claims that it owes the customers of cryptocurrency exchange Gemini $900 million, a matter that The Financial Times reported on last month.

This financial dispute came as a result of Gemini partnering with Genesis for the exchange’s Earn program, in which participants can lend certain cryptocurrencies and receive rewards.

By taking part in this offering, participants can earn an APY over 8%.

Cameron Winklevoss, cofounder and president of Gemini, recently threatened to pursue legal action against Digital Currency Group and its CEO, Barry Silbert, in order to resolve this dispute.

This development generated significant headlines after troubled exchange FTX announced in November that it was filing for bankruptcy protection.

The company had been valued at as much as $32 billion in a funding round that took place early last year.

However, in November, Sequoia Capital, a well-known venture capital firm that previously invested in giants like Google LLC and Apple Inc., marked down the value of its investment in FTX to zero.

These developments all took place during a period that many have dubbed “Crypto Winter,” during which many digital currencies have been trading down significantly from their all-time highs and startups in the space have been suffering from reduced opportunities for funding.

The price of bitcoin, for example, has fallen from north of $60,000 in late 2021 to roughly $15,500 in November 2022 on TradingView.

In spite of this, it is worth keeping in mind that the digital currency traded for less than the aforementioned value of $15,500 for much of its existence, rising to this price in 2017 as the broader cryptocurrency market experienced some highly impressive gains.

Even after the recent lows that bitcoin reached in November, it was still up substantially from the value it held at some points, seeing as how it was worth less than $0.01 in its early days.

Between 2011 and 2021, the digital currency outperformed many other asset classes, generating annualized returns of more than 230%, according to an analysis conducted by Charlie Bilello, chief market strategist for independent wealth advisory firm Creative Planning.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.

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