Bitcoin Breaks $30,000 Barrier for First Time Since June 2022
Bitcoin (BTC) has surged above $30,000, reaching its highest point since June 10, 2022, and up by 6.75% in the past 24 hours. The cryptocurrency’s rally comes as the banking turmoil of March becomes more distant, and investors grow more positive about US central bank monetary policy.
Slowdown in Growth Signals Loosening Monetary Policy
According to Richard Mico, the CEO and chief legal officer of Banxa, the market is pricing in a slowdown in growth, and a consequent loosening of monetary policy by the Federal Reserve over the course of 2023. The US two-year treasury note has fallen to below 4% from its early March peak above 5%, indicating a reversal of traders’ expectations of future Fed rate hikes.
Bitcoin’s Rapid Response to Monetary Shifts
Bitcoin’s rapid response to monetary shifts means that it is likely to continue performing well. According to 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.”
Bitcoin Emerges as a Reliable Store of Value
The banking crisis has given rise to a narrative shift that is feeding into Bitcoin’s momentum. According to Mico, BTC is being seen as a reliable store of value that lacks the issues that come with storing money through a third-party intermediary or a bank. Furthermore, de-dollarization is increasingly becoming part of the narrative, accelerating BTC adoption. As Mico stated, “With BTC, in short, you are your own bank.”
Bitcoin as a Safe Haven for Investors
According to Bob Ras, co-founder of Sologenic, Bitcoin’s decoupling from stocks and increasing appeal as a safe haven for investors signifies its ascendance onto the global stage as a formidable asset. This pivotal juncture signifies a pivotal advancement for the digital asset sector.
Source: CoinDesk
