Bitcoin Jumps Over $30,000 For First Time in Nine Months

By Staff, Agencies

Bitcoin [BTC] passed the $30,000 mark for the first time since June 10, 2022, despite the collapse of major crypto-focused banks.

By market capitalization, the largest cryptocurrency was recently up 6.75% in price, selling at $30,237.

On his account, Richard Mico, the US CEO and Chief Legal Officer of Banxa, a payment-and-compliance infrastructure provider for crypto, said that “it’s clear that the market is pricing a slowdown in growth, and in turn a loosening of monetary policy by the Federal Reserve over the course of 2023."

"For evidence of this, just look at the bond market," Mico added.

The US 2-Year Treasury note has dropped to around 4% from a peak above 5% in early March, according to a review of the bond market, as traders quickly changed their predictions of future Fed rate hikes.

"There will likely still be a lot of liquidity injected into the market as a result," added Mico. "Already, Bitcoin has been the best-performing asset of 2023, and it usually is the asset that responds most quickly and violently to these kinds of monetary shifts."

On June 10, 2022, Bitcoin reached a high of $30,000 before falling to a low of around $20,000, where it stayed for a significant portion of the rest of the year and the first few weeks of 2023.

For the past three weeks, it has been circling at $28,000 as cautious investors assessed the effects of a nearly bankrupt banking system, ongoing inflationary pressures, and other macroeconomic risks. After trading at around $16,600 at the beginning of 2023, Bitcoin has increased by roughly 80% so far this year.

Following the failure of Silicon Valley and Signature banks in late March, the cryptocurrency market picked up steam as some investors began to doubt the stability of the current monetary system and their appetite for assets with long-term value.

The cryptocurrency market had surged in January amid signs that inflation was slowing, stalled in February, and then picked up steam in late March. A recent increase in gold prices has seen it reach $2,000 for the first time since 2020.

"De-dollarization is also increasingly becoming part of the narrative, which is further accelerating BTC adoption," Mico concluded. "With BTC, in short, you are your own bank. It’s difficult to make predictions given the volatility of late, but I wouldn’t be surprised if this momentum regarding BTC continues."

Bitcoin had separated from equities and demonstrated "its increasing appeal as a safe haven for investors," according to Bob Ras, co-founder of Sologenic, a blockchain-powered network for tokenizing securities, in an email to CoinDesk.

"While the 2020-2021 period was perceived as Bitcoin's breakthrough moment, the present time truly marks its ascendance onto the global stage as a formidable asset," Ras wrote. "Amidst heightened geopolitical instability, faltering banking systems and mounting concerns surrounding reserve currencies, Bitcoin has emerged as the reliable refuge that many had anticipated. This crucial juncture signifies a pivotal advancement for the digital asset sector.”