Bitcoin confirms its recovery and for the first time since June 2022 it has recovered the level of $30,000. The most popular of the cryptocurrencies has accumulated a revaluation of almost 82% so far this year, driven by the recent turbulence in the global banking system and by expectations that the rate hikes by the US Federal Reserve (Fed) will continue. complete sooner than expected.
Despite the comeback, Bitcoin remains far from the record that rose close to 70,000 greenbacks. Cryptocurrencies have been affected in the last year by several scandals that have hit their price and also investor confidence in their value as a safe haven asset.
The Luna token debacle, first, and the FTX bankruptcy, later, put the focus of regulators and markets on the stability of this type of asset. The controversies came to drag Bitcoin to the level of $16,000, however, the recent banking crisis unleashed after the collapse of Silicon Valley Bank (SVB) and the fall of Credit Suisse has restored its vigor and the category of safe haven.
Only in the last month it has accumulated a rise of 48%, which has taken it from $20,000 to $30,139 this Tuesday. “As the Fed continues to raise interest rates, the market expects the recent bank failures to lead to an easing of central bank measures. Lower interest rates would benefit assets with longer maturities, such as digital assets. In addition, several traders have been surprised and retailers, who expected further declines in digital assets, have had to liquidate their exposures, causing prices to rise,” says Mirva Anttila, Digital Assets Research at WisdomTree, to explain the strength with which digital assets have started 2023.
As usual, the behavior of Bitcoin sets the pace for the rest of the cryptocurrencies, which is why green is the predominant color in the market this Tuesday. Ethereum rises 3.11% and stands at $1,900; Cardano earns 5.34%, and Solana, 9.85%, among others.
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