Bitcoin rises 10%, touches $30,000 for second time in April
Bitcoin touched $30,000 on Wednesday, with traders indicating they expect the Federal Reserve to inject capital into the economy in the near future amid indications of another US bank failure. This is the second time the cryptocurrency has reached the $30,000 mark this month after being stuck between $26,500 and $29,400 during March.
Bitcoin touched $30,000 on Wednesday, with traders indicating they expect the Federal Reserve to inject capital into the economy in the near future amid indications of another US bank failure. This is the second time the cryptocurrency has reached the $30,000 mark this month after being stuck between $26,500 and $29,400 during March.
Despite seeing a significant increase in prices this year, Bitcoin is still trading at less than half its peak of nearly $69,000 in November 2021. The digital asset’s appeal to many investors has been dampened by a number of industry scandals and bankruptcies that occurred last year.
Despite seeing a significant increase in prices this year, Bitcoin is still trading at less than half its peak of nearly $69,000 in November 2021. The digital asset’s appeal to many investors has been dampened by a number of industry scandals and bankruptcies that occurred last year.
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“We have seen a decrease in volume, market depth and liquidity, which translates into higher volatility,” said Ambre Soubiran, CEO of crypto data provider Kaiko, during a Bloomberg TV interview.
“It is currently an indication that while there is positive sentiment around the price of these assets, the market is not back to pre-crisis levels until 2022 in terms of volume and market depth, most importantly,” Soubiran added.
Bitcoin’s surge was fueled by different narratives, such as its role as an inflation hedge and its ability to circumvent weaknesses inherent in traditional banking systems. Bespoke’s Paul Hickey observed that changes in Bitcoin’s relative strength typically align with changes in the S&P 500, rather than serving as a precursor to movements in the stock market.
“Comparing the performance of the S&P 500 with the relative strength of Bitcoin versus the S&P 500 shows a loose but unconvincing link between the two series,” Hickey wrote in a Tuesday note.
“While Bitcoin and the crypto space have little to do with the stock market, some traders monitor the space in the belief that it provides a good barometer of overall risk appetite,” he added.
(With input from Bloomberg)
