The Bitcoin (BTC) rally which started at the beginning of 2023 has soared above $30,000, indicating a new high for the cryptocurrency since June 2022 when the crypto winter hit the industry. According to CoinMarketCap, the leading cryptocurrency by market cap is currently trading at $30,073.07.
This heightened rally represents an 80% upshot in the Year-to-Day (YTD) period and it is worth noting that this comes after the tumult which hit the crypto and financial sector in March.
Right after the United States Federal Reserve hiked interest rate, the combined crypto market capitalization surged by 4.25% reaching more than $1.09 trillion.
Simultaneously, the price of several risk assets including BTC jumped to new highs which they had previously not recorded in more than half a year. In accordance with its resilience, InsideCrypto stated that the growth trend placed Bitcoin as a high performer in the Year-to-Date (YTD) period.
Bitcoin Rally Revives Investor Interest
Consequently, investors became more pessimistic towards the U S. central bank monetary policy and began to flock around the leading coin.
Even Cathie Wood, Ark Invest’s Chief Executive Officer (CEO) predicted that more institutional investors would be attracted to the nascent industry. Her prediction came from the fact that Bitcoin had consistently surged since the beginning of the price rally.
“The fact that Bitcoin moved in a very different way from the equity markets, in particular, was quite instructive,” She outlined.
Amidst the present growth trend, Richard Mico, the U.S. CEO and chief legal officer of a payment-and-compliance infrastructure provider for crypto known as Banxa said, “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,” so “For evidence of this, just look at the bond market.”
“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.”
Markedly, the rise to over $30,000 is still a far cry from BTC’s all-time high of more than $68,000 attained back in November 2021. However, it is a significant leap from the low of around $16,000 during the fourth quarter of 2022 when Bahamian-headquartered crypto exchange FTX imploded and its CEO Sam Bankman-Fried resigned.
