For the first time since June 2022, Bitcoin surpassed $30,000, increasing by more than 80% since the year’s beginning.
The recovery is more pronounced than an almost 20% rise on the Nasdaq 100, with which Bitcoin has a tendency to move in tandem, and it recovers some of the losses suffered by the digital token after a string of crypto-related explosions in 2022. Yet, Bitcoin has decreased by more than 50% since reaching its peak in November 2021.
The 30k is very significant for both technical and fundamental reasons, according to Mati Greenspan, CEO of Quantum Economics. “After steadily accumulating for three weeks, the resistance has finally given way. This is the first time since Terra/Luna and Three Arrows Capital’s demise that we have surpassed that level. In essence, it indicates that the price has completely recovered from Celsius, FTX, and the regulatory onslaught in the US.
Undoubtedly, there is still a lot of scrutiny on the cryptocurrency sector. The Securities and Exchange Commission has informed the cryptocurrency exchange Coinbase Worldwide Inc. that it intends to take enforcement action. Crypto tycoon Justin Sun has been sued by the SEC for allegedly breaking securities laws, a claim Sun has disputed. The US Commodities Futures Trading Commission has also filed a lawsuit against Changpeng Zhao, the founder of Binance, and his cryptocurrency exchange for alleged violations of derivatives laws, while Binance has stated that it disagrees with many of the agency’s assertions.
Nonetheless, despite the setbacks, Bitcoin’s bounce has been stronger over the past month as a result of the failure of three US banks, which reignited the idea among proponents of the cryptocurrency that it presents a more enticing alternative to conventional finance.
However, according to analysts, the recovery may be partially explained by a decline in liquidity to a 10-month low that occurred after market makers lost access to US banking rails offered by Silvergate Capital Corp. and Signature Bank. Lower trading volume can make price movements appear more pronounced.
Head of statistics and analytics at FRNT Financial Strahinja Savic remarked, “Order books are thin and trading activity is down.” “In these conditions, it’s feasible that we’ll witness price behaviour that’s hard to attribute to any single cause.”
