The collapse of the FTX cryptocurrency exchange in 2022 marked one of the most tumultuous chapters in the history of digital assets. The industry had been shaken up by the platform’s sudden down fall and Bitcoin (BTC) and the other cryptocurrencies had found themselves in a protracted bear market following significant losses.
Founder Sam Bankman-Fried, meanwhile, was found liable for fraud amongst the wreckage, extending the crisis even further. But as with most scandals that rock the crypto world, the assets were redeemed just at the time when Bitcoin’s prices started soaring a surprise turn of events.
Bitcoin Bounces Back After FTX Collapse
On March 28, 2024, when Bankman-Fried was due to be sentenced for his part in losing FTX, Bitcoin was at $70,744. On January 28, 2025, fast forward to Bitcoin hitting breaking their previous records in a more impressive rise of 45.3% in just 10 months to reach $102,850.
Those who decided to invest $1,000 into BTC on March 28, 2024, would now have found themselves with a BTC investment of $450 richer than $1,000 because, only a little over a year later, BTC’s value had reached approximately $1,451.26. Even after the FTX collapse, this is a dramatic rise, given the initial bearish sentiment around BTC.
In the Bitcoin space, the key to that rebound has been the approval of the much anticipated spot exchange traded fund (ETF) which allowed institutional investors to begin to flow into the market, which in turn injected bullish sentiment across the whole space.
However, Bitcoin’s resurgence was also largely dependent on recent U.S. politics. Market enthusiasm is driven by the election of Donald Trump and his promise to pass crypto-friendly legislation, and his suggestion to have BTC in the strategic reserve.
This, added to the exit of Gary Gensler from the U.S. Securities and Exchange Commission (SEC), puts into motion a potential more friendly to crypto regulatory environment. It could also open the way for BTC to expand even further.
BTC is currently defending the $100000 mark once again as a key resistance point. In the coming months, BTC could even hit $120,000, Crypto analysts including Captain Faibik are saying. Faibik’s analysis shows that the cryptocurrency is forming a rising wedge pattern on its daily chart and a future upward trend that might take prices to new all-time highs.
Bitcoin’s future appears bright, even while the market remains wary and authorities are out in force, with some wondering if the momentum might slow down enough to trigger a pullback. Should BTC break above the upper area of the wedge, an accelerated rally towards $120,000 could unfold. However, if this trajectory was not helped, a fall to the $95,000 level could occur.
