The move extends the 2023 rally, which has seen the most popular cryptocurrency gain more than 80%.
Bitcoin (BTC) surpassed $30,000 for the first time since June 10, 2022, as March’s banking turbulence faded into the background and investors became more optimistic about US central bank monetary policy.The most valuable cryptocurrency in terms of market capitalization was recently trading at $30,237, up 6.75% in the last 24 hours.
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“It’s clear that the market is pricing in a slowdown in growth and, thus, a loosening of monetary policy by the Federal Reserve over the course of 2023,” said Richard Mico, U.S. CEO and chief legal officer of Banxa, a crypto payment and compliance infrastructure provider. “Look no further than the bond market for proof of this.”
A look at the bond market reveals that the 2-year Treasury note in the United States has fallen to below 4% from a peak above 5% in early March, as traders quickly reversed their expectations of future Fed rate hikes.”There will almost certainly be a lot of liquidity injected into the market as a result,” Mico added. “By 2023, Bitcoin will already have been the best-performing asset, and it is typically the asset that responds most quickly and violently to these types of monetary shifts.”
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Bitcoin last surpassed $30,000 on June 10, 2022, as it was on its way down to under $20,000, where it spent much of the rest of that year and the first few weeks of 2023. For the past three weeks, it has been hovering around $28,000 as nervous investors assessed the impact of a near-bankruptcy, continued inflationary pressures, and other macroeconomic uncertainties. Bitcoin is up roughly 80% year to date after beginning 2023 at around $16,600.
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The cryptocurrency surged in January amid signs of easing inflation, stalled in February, and then regained momentum 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 assets that hold their value. Gold has also recently increased in value, surpassing $2,000 for the first time since 2020.Mico noted that there is undoubtedly a narrative shift occurring as a result of the banking crisis, which is fueling Bitcoin’s momentum. “BTC is also increasingly being seen as a reliable store of value that lacks the issues that come with storing your money through a third-party intermediary, such as a bank,” he added.
Mico, in his analysis, pointed out that the de-dollarization movement is gaining more traction and contributing to the accelerated adoption of BTC. He emphasized that with BTC, individuals can act as their own bank, granting them more control over their finances. Although the recent volatility in the market makes it hard to make any definitive predictions, Mico believes that the momentum of BTC adoption will continue to grow.
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Bob Ras, co-founder of Sologenic, conveyed his thoughts on BTC’s recent performance in an email to CoinDesk. He noted that BTC has become more attractive to investors, as it has detached itself from the stock market and proved to be a safe haven asset. Ras observed that BTC’s breakthrough moment occurred between 2020 and 2021, but its current status has solidified its position as a valuable asset on the global stage. Given the increased instability in geopolitical affairs, unreliable banking systems, and concerns surrounding reserve currencies, BTC has become the reliable refuge that many had anticipated. Ras believes that this milestone is a significant advancement for the digital asset sector.
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