Bitcoin (BTC) Despite the collapse of major crypto-focused banks, it has increased by 50% this year. stock indices And commodities left behind.
Bitcoin (BTC) Already Up 50% This Year, Outpacing Stocks And Gold
On January 1, Bitcoin was trading at just over $16,500. It was hovering around $26,000 on Tuesday thanks to the rally that started on Sunday.
This year’s price increase comes after Bitcoin slumped 65% in 2022 after a series of major projects and hedge fund collapses, bankruptcies, liquidity problems and the failure of one of the world’s largest cryptocurrency exchanges, FTX.
The recent surge came as a bit of a surprise, given the closure of the crypto industry’s two largest lenders, Silvergate Capital and Signature Bank.
“Bitcoin’s 50% rise in 2023 is a reflection of how battered it was after the collapse of FTX, the shifting interest rate outlook and the failure of the SVB,” Antoni Trenchev, co-founder of crypto trading platform Nexo, told CNBC. said.
Since its peak of around $69,000 in November 2021, Bitcoin is still down more than 60%.
According to Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, the collapse of Silvergate, Signature Bank and SVB caused shock waves in financial markets, while Bitcoin’s recovery could also be due to these failures.
“The events of the past week with the failure of the SVB and other banks also shed light on the power of decentralized currencies that people can fully store and own,” Ayyar said. “Decentralized finance is starting to make itself felt as a concept for more and more people.”
Bitcoin advocates have argued that the digital currency is a way for investors to protect themselves against central bank moves, particularly quantitative easing and looser monetary policy, which they say is eroding the value of fiat currency.
Proponents point to Bitcoin’s limited supply as a key feature of its being a store of value.
*Not investment advice.
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