FTX Token Value Rebounds; Bitcoin Traders Eye $40K Support Amid ETF Approvals

By: Eva Baxter

FTX’s native token FTT's market capitalization crossed the $1 billion mark once again, showcasing an uptick post its abrupt collapse in 2021. The renewed interest in the token, up by 27% over the past week, is attributed to the approval of a spot Bitcoin exchange-traded fund in the U.S., leading investors to diversify into altcoins. Prominent cryptocurrencies such as Avalanche, Sui, and Ethereum have shown double-digit gains in the wake of these developments.

Despite FTT’s rebound, it is still down by a significant 96% from its all-time high seen in the bull market of September 2021. Meanwhile, FTX's bankruptcy process proceeds with customers contesting the exchange’s plan to estimate their digital claims in U.S. dollars. Substantial objections have been filed including by notable cryptocurrency firms.

Concurrently, Bitcoin traders are eyeing the $40K mark as support amid the U.S. approval of spot Bitcoin ETFs, signaling a potential short- to mid-term peak for the price, as per analysts. The recent developments in ETF approvals were anticipated and well-priced into market expectations, hence the impact will likely be temporary and could lead to adjustments in Bitcoin's value.