Bitcoin confirms its recovery and for the first time since June 2022 has recovered the level of $ 30,000. The most popular of the cryptocurrencies accumulates 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 of the US Federal Reserve (Fed) will be completed sooner than expected.
Despite the comeback, Bitcoin remains far from the record that climbed it close to 70,000 greenbacks. Cryptocurrencies have been affected in the last year by several scandals that have hit their price and also the confidence of investors in their value as a safe haven asset.
The Luna token debacle, first, and the bankruptcy of FTX, later, put the focus of regulators and markets on the stability of this type of assets. 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 returned the vigor and the category of safe haven asset.
Only in the last month accumulates a rise of 48%, which has taken it from $ 20,000 to $ 30,139 on Tuesday. "As the Fed continues to raise interest rates, the market expects recent bank failures to lead to the easing of measures taken by the central bank. Lower interest rates would benefit assets with long-term maturities, such as digital assets. In addition, several traders have been surprised and retailers, who expected further falls in digital assets, have had to liquidate their exposures, which has caused 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 marks the passage to the rest of cryptocurrencies, hence green is the predominant color in the market on Tuesday. Ethereum is up 3.11% to $1,900; Cardano gains 5.34%, and Solana, 9.85%, among others.
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