Bitcoin BTC price explodes past $30,000 as investor confidence rises
Bitcoin (BTC) moved past the $30,000 level for the first time since June 10, 2022 as the March banking turbulence faded further into the distance and investors became more optimistic about US central bank monetary policy.
The largest cryptocurrency by market cap recently traded at $30,237, up 6.75% in the last 24 hours.
“It is clear that the market is pricing in a slowdown in growth and, in turn, an easing of monetary policy by the Federal Reserve during 2023,” said Richard Mico, US managing director and legal head of Banxa, a payments and compliance infrastructure provider for crypto. “For proof of this, just look at the bond market.”
A check of the bond market shows that the US 2-year Treasury note has fallen below 4% from a peak above 5% in early March, as traders quickly reversed expectations of future Fed rate hikes.
“There will probably still be a lot of liquidity injected into the market as a result,” Mico added. “Already, Bitcoin has been the most effective asset in 2023, and it is usually the asset that reacts fastest and most violently to such money shifts.”
Bitcoin last topped $30,000 on June 10, 2022 when it was on its way down to below $20,000, where it spent much of the end of that year and into the first weeks of 2023. It has been hovering around $28,000 for the past the three weeks as careful. investors gauged the impact of a near-bank meltdown, continued inflationary pressures and other macroeconomic uncertainties. Bitcoin is up about 80% so far this year after starting 2023 changing hands at around $16,600.
“Undeniably, Bitcoin is disconnecting from traditional stocks and demonstrating its growing appeal as a safe haven for investors across retail and institutional spheres,” Bob Ras, co-founder of Sologenic, a blockchain-powered securities tokenization network, said in a note to CoinDesk. “While the 2020-2021 period was perceived as Bitcoin’s breakthrough moment, the present truly marks its ascent on the global stage as a formidable asset.”
The crypto rallied in January amid signs inflation was easing, stalled in February, but then picked up in late March following the failure of Silicon Valley and Signature banks as some investors questioned the stability of the current monetary system and regained appetite for holding assets. their value. Gold has also recently rallied, topping $2,000 for the first time since 2020.
Mico noted that there is certainly a narrative shift happening because of this banking crisis that is feeding into Bitcoin’s momentum. Increasingly, “BTC is also seen as a trusted store of value that lacks the hassles that come with storing your money using a third-party intermediary or a bank,” he added. “BTC is now beginning to be perceived as a risky asset.”
“De-dollarization is also increasingly becoming part of the narrative, further accelerating BTC adoption,” Mico concluded. “With BTC, in short, you are your own bank. It’s hard to make predictions given the recent volatility, but I wouldn’t be surprised if this momentum regarding BTC continues.”
