- Bitcoin rises 2.5% in the last 24 hours and recovers USD 28,000, a level it has not touched since June 2022.
- The momentum that BTC has taken in recent weeks occurred in the midst of a banking crisis that the United States is going through, with the bankruptcy of two renowned financial institutions.
- Bitcoin advocates are more than happy, as BTC has served as a haven of value and has stopped tracking the Nasdaq.
Apparently, the crisis in the banking sector in the United States benefited Bitcoin. It is that the main cryptocurrency in the world was adopted as a refuge of value and such is the case that it rose almost 20% in the last week, trading again at USD 28,000.
At one point in the morning, Bitcoin surpassed $28,500, a figure not seen since June of last year, that is, nine months. Its market capitalization, in addition, rose 26,000 million dollars in just one day.
The collapse of Silicon Valley Bank and Signature Bank in the United States, plus the panic selling of Credit Suisse shares, created turbulence on Wall Street, so many retail investors moved their money into BTC.
Proponents of Bitcoin are very happy at the moment since for them BTC was created as a safe haven of value, something that is happening in these times of global turmoil.
In addition, and not a minor fact, is that BTC has cut its alignment with the Nasdaq technology index. While BTC has risen 19% in the past week, the index has gained a mere 4%.
If we take into account the last month, the Nasdaq has lost 1.4% and Bitcoin has jumped 13.2% during the same period. This is not usual.
“If one looks at the history of Bitcoin and why it was created in the first place, it was precisely because of events like this that the current system shows signs of weakness and therefore it helps to have an uncorrelated asset. Over the years this argument that Bitcoin is an uncorrelated asset class has been debated quite a bit, but now we are potentially seeing that viewpoint being vindicated in many ways.”
Vijay Ayyar, Luno’s vice president of corporate, told CNBC.
Something also to note is that gold has risen around 9% this year, while Bitcoin has shot up almost 70%.
“ As this banking crisis unfolds, it will be interesting to continue to watch Bitcoin price action as more and more people think about owning Bitcoin as a smart alternative to the current system,” Ayyar highlighted.
So far, Bitcoin is one of the assets that has performed the most so far this year.
