Bitcoin (BTC) has crossed the $30,000 level for the first time since June 10, 2022. March’s bank turmoil faded and investors became more optimistic about the US central bank’s monetary policy.
The largest cryptocurrency by market capitalization recently traded at $30,237, up 6.75% over the past 24 hours.
“Markets are pricing in slower growth and the Fed will ease monetary policy in 2023,” said Federal Reserve Chief Legal Officer Richard Mico. It’s clear,” he said. Bantha, a crypto payment and compliance infrastructure provider. “For proof of this, look at the bond market.”
A check on the bond market shows that US 2-year Treasury bills have fallen below 4% from a peak of over 5% in early March as traders quickly reversed their expectations of future Fed rate hikes. increase.
“There will likely still be a lot of liquidity injected into the market as a result,” Mico added. “Already, Bitcoin is the best-performing asset in 2023, and typically the one that reacts the fastest and hardest to currency changes of this kind.”
Bitcoin broke above $30,000 on June 10, 2022 and dipped below $20,000, spending most of the second half of the year and first few weeks of 2023. Investors assessed the impact of bank meltdowns, continued inflationary pressures and other macroeconomic uncertainties. Bitcoin is up about 80% year-to-date after opening at around $16,600 in 2023.
In January, amid signs of weakening inflation following the failures of Silicon Valley Bank and Signature Bank, as some investors questioned the stability of the current monetary system and regained appetite for their holdings. Cryptocurrencies surged, stalled in February, but picked up momentum in late March. their value. Gold has also surged recently, surpassing $2,000 for the first time since 2020.
Miko pointed out that there is indeed a change in narrative due to this banking crisis that has spurred Bitcoin’s momentum. It is also seen as a reliable store of value without the problems associated with storing BTC,” he added.
“De-dollarization is also becoming more and more part of the story, further accelerating BTC adoption,” Mico concluded. “In short, with BTC, you are your own bank. It’s hard to predict given the recent volatility, but I wouldn’t be surprised if this momentum with BTC continues.”
Bob Ras, co-founder of Sologenic, a blockchain-powered network for tokenizing securities, said in an email to CoinDesk that bitcoin will be decoupled from stocks and used as a “safe haven for investors.” The attractiveness of
“While the 2020-2021 period was hailed as a breakthrough moment for Bitcoin, it now truly marks its rise to the global stage as a formidable asset,” Ras wrote. increase. “Amid rising geopolitical instability, a weakening banking system, and growing concerns over reserve currencies, Bitcoin has emerged as the credible haven many expected. A significant milestone represents a crucial advance for the digital assets sector.”
UPDATE (04/11/2023 2:16 UTC): Adds comment from Bob Ras.
