The world’s largest digital currency Bitcoin (CRYPTO: BTC) breached the $25,000 mark last week, hitting a new 2023 high, a stark contrast to November when the cryptocurrency saw a significant drop to a 2022 low of $15,742 after FTX (KRYPTO: FTT) crisis.
The top crypto’s value started to increase again in January and continued to do so during the month.
The last time BTC’s value was around $25,000 was in mid-June last year, after which it fell to a range of $19,000 to $21,000 where it remained stagnant for several months.
Image: CoinGecko
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Industry veterans believe that the proliferation of businesses and merchants embracing BTC as a viable payment option is a determining factor in the cryptocurrency’s rising valuation.
According to the experts, the increase in BTC’s price has made it an attractive alternative for those who are skeptical of traditional financial institutions.
Azra Kojadinovicpresident i Serbia chapter says the recent rise in BTC prices has sparked renewed interest in cryptocurrencies, and this trend is likely to continue in the future.
“BTC’s long-term outlook remains positive, and ETH’s growing popularity as a platform for creating dApps is driving growth. As cryptocurrency adoption continues to increase, the future of the cryptocurrency market looks bright,” Kojadinovic said.
In accordance Whitney Setiawanresearch analyst at crypto exchange Bee threatalong with BTC’s rise, Ethereum (CRYPTO: ETH) has also breached $1,700 for the first time in more than 3 months.
“While enthusiasm is high, we can see long-term holders taking their gains, leading to a somewhat visible negative correction in the short to medium term. However, this recent rally has shown that the industry is becoming somewhat immune to negative regulatory pressure, and investors are taking positions that could change their bottom line in the future,” Setiawan said.
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Jenny ZhengBD Lead, Bybit Web3 says with the proliferation of businesses and merchants embracing BTC as a viable payment option, demand for the cryptocurrency has experienced a marked increase, thus driving its value upwards.
“This reason for adoption is further reinforced by the increasing prevalence of BTC wallets, which indicates a growing number of individuals buying and holding BTC as a secure value or investment vehicle. The recent trend of generating BTC non-fungible tokens (NFT -er) is expected to exert further pressure on BTC adoption,” according to Zheng.
The increase in BTC price is not only attributed to its intrinsic value, but is also heavily influenced by the current global economic climate.
The unprecedented nature of the pandemic has caused economic turmoil, resulting in market volatility and leaving investors with a sense of uncertainty.
Andy Lianan intergovernmental blockchain expert, says investors, in response, are increasingly turning to alternative investments that offer a hedge against inflation and economic instability.
“BTC is seen by many as a safe haven, and its decentralized nature makes it an attractive option for those skeptical of traditional financial institutions,” he says.
At the time of publication on Sunday, Bitcoin was trading at $24,571, down 2% in 24 hours but up over 11% in the past seven days.
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