With the wave of bank failures in the United States under control last month and investors’ optimism about the Federal Reserve’s monetary policies, the price of Bitcoin once again managed to rise above the $30,000 level.
According to CoinDesk, the largest digital currency was traded with a jump of more than 7% in the last day and night up to the price of $30,399.
Richard Mico, CEO of the American branch of Banksa, a company that provides payment infrastructure for digital currencies, said:
It is clear that with the decline in the market growth rate, we are witnessing a reduction in the pressure of the Federal Reserve’s tight monetary policies during 2023. Just look at the bond market.
The yield on 2-year U.S. Treasuries fell to less than 4 percent from above 5 percent in early March after traders quickly revised their expectations for future rate hikes by the Federal Reserve, a survey of the bond market showed. has been found
As a result, there will likely continue to be a lot of liquidity injected into the market. Bitcoin has been the best performing asset in 2023, and the asset typically reacts the fastest and most strongly to this form of monetary change.
Bitcoin last reached $30,000 on June 10, 2022 (20 June 1401) and then fell below $20,000. A range that fluctuated for a large part of the end of that year and the first weeks of the new year.
The digital currency has been trading around $28,000 over the past 3 weeks as investors weigh the effects of recent bank failures, continued inflationary pressures and other macroeconomic uncertainties. Bitcoin started 2023 at a price of $16,600 and has grown by more than 80% to date.
The price of this digital currency increased in January amid signs of deflation, but its growth stopped in February. But its price rose again in late March, after the bankruptcy of Silicon Valley and Signature Bank, when some investors questioned the stability of the current monetary system and moved to assets with intrinsic value. The price of gold has also increased recently and for the first time since 2020, it has crossed the $2,000 mark.
Miko noted that there is certainly a trend reversal happening because of the banking crisis that caused Bitcoin to bounce.
Bitcoin is increasingly seen as a reliable store of value asset that does not have the problems associated with storing money through an intermediary or bank. Now, Bitcoin is being accepted as a risk-free asset.
Miko said at the end:
The reduction of the dominance of the dollar on global markets, which accelerates the adoption of Bitcoin, is part of this trend change. In short, with Bitcoin, you are your own bank. It’s hard to predict the market given the recent volatility, but I wouldn’t be surprised if Bitcoin’s current trend continues.
Bob Ras, co-founder of Sologenic, a blockchain-based network for tokenizing securities, noted that bitcoin’s trajectory has diverged from the stock market and that the asset is no longer “increasingly attractive as a safe haven for investors.” has shown
While the years 2020 to 2021 can be seen as Bitcoin’s breakthrough period, the current time truly represents its rise to the global stage as a major asset.
Amid rising geopolitical instability, shaky banking systems, and growing concerns about currency reserves, Bitcoin has emerged as a safe haven, as many predicted. This milestone represents a fundamental development for the digital currency sector.