Despite the collapse of FTX and the downfall of its co-founder Sam Bankman-Fried, investor confidence in the apex cryptocurrency stands strong as the price of Bitcoin BTC/USD has rallied over 60% since his arrest.
What Happened: Once a major Democratic donor, a celebrated philanthropist, and billionaire, Bankman-Fried was put in jail after being arrested in the Bahamas on Dec.12, 2022, on wire fraud, securities fraud, and money laundering charges.
The collapse of his cryptocurrency exchange FTX and its partner hedge fund Alameda Research in November 2022 was not a usual story of crypto volatility or investor risk-taking. It was due to unsustainable layers of deception, which also included the disappearance of $1 billion in customer funds. Bankman-Fried was released from jail on a $250 million bond.
In August 2023, his bail was revoked after he was found to have tampered with a witness, and since then has been at a Brooklyn jail. While the ongoing trial addresses the charges currently against him, he will face another separate trial in March 2024 for additional allegations, including bank fraud and foreign bribery conspiracy.
Why It Matters: Bitcoin's price since December 2022 has seen a surge of over 60%. This reflects that despite the collapse of FTX and Bankman-Fried's trial, investor support for Bitcoin has been undeterred.
Over the past year, while Bitcoin has grown in acceptance and popularity in various countries as a prominent digital asset, the crypto space has also witnessed its share of scams and setbacks. Many new cryptocurrencies and blockchain networks have been launched since the Bankman-Fried's fall. Governments across the world are trying to lay down the legal rules and regulatory framework for carrying out Bitcoin operations.
Bullish BTC Outlook: Looking ahead, crypto services provider Matrixport estimates Bitcoin to peak at $37,000 by the end of the year, as October has traditionally been a strong month for the crypto. The month has seen an average 20% return in seven out of the last nine years, while the last quarter of the year has had an average return of 35% in the past nine years.
Notably, the possible approval of a Bitcoin ETF in the U.S. may impact prices positively.
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Read More: Disgraced FTX Founder's Parents Accused Of Misappropriating Funds, 'Ignoring Scheme'
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