Bitcoin breaks $30k barrier: what’s next
For the first time since June 10, 2022, bitcoin (BTC) has surged past the $30,000 mark, fueled by fading banking turbulence, growing investor optimism, and a potential shift in US central bank monetary policy.
The world’s largest cryptocurrency by market cap witnessed an over 8% increase, reaching $30,399 on April 11. As of this writing, the BTC price has retraced to $30,079.
A monetary revolution drives Bitcoin’s ascent
The market’s anticipation of a slowdown in growth and potential loosening of monetary policy by the Federal Reserve in 2023 has played a significant role in bitcoin’s current performance.
The US 2-year Treasury note dropped below 4% from a peak above 5% in early March, indicating traders’ reversed expectations of future Fed rate hikes.
This development led to an influx of liquidity entering the market, benefiting BTC as an early and powerful responder to these monetary changes.
The banking crisis and de-dollarization: catalysts for bitcoin’s momentum
The recent banking crisis has prompted investors to question the stability of the current monetary system, driving them to seek assets that maintain their value in uncertain times.
Consequently, gold has spiked, surpassing $2,000 for the first time since 2020.
This scenario has contributed to a shift in perception, positioning Bitcoin as a reliable store of value that is not subject to the issues associated with third-party intermediaries, such as banks.
Moreover, the growing trend of de-dollarization has further accelerated BTC adoption, allowing individuals to become their own banks.
As a result, bitcoin is increasingly perceived as a risk-off asset that offers a safe haven for investors amidst geopolitical instability, faltering banking systems, and concerns surrounding reserve currencies.
The crypto climate warms up in Asia
Recent developments in Asia indicate a possible shift in sentiment towards cryptocurrencies.
For instance, China’s TikTok-equivalent, Douyin, has begun displaying the price of Bitcoin in search results, hinting at a more lenient stance from Beijing towards digital assets.
Additionally, Hong Kong has recently opened its doors to crypto, with state-owned banks in China reportedly soliciting business from crypto firms.
Key figures in Hong Kong’s financial landscape have expressed support for the development of the web3 ecosystem, emphasizing the importance of proper regulation, investor education and protection, as well as anti-money laundering efforts.
As bitcoin soars beyond the $30,000 mark and central bank policies continue to evolve, the cryptocurrency has undoubtedly cemented its position as a formidable asset on the global stage.
With an 80% year-to-date (YTD) increase, bitcoin’s resurgence signals a pivotal advancement for the digital asset sector and a new dawn for the crypto giant.
One analyst has recently made a bold, short-term prediction for bitcoin (BTC), setting a target range of $34,000 to $36,000 based on a bullish flag breakout on the daily chart.
Additionally, CoinCodex has predicted that BTC may experience a surge of more than 33% and surpass the $40,000 threshold by April 17th.
These predictions, however, should be taken with a grain of salt, as the cryptocurrency market is notoriously unpredictable and subject to rapid price fluctuations. Investors should carefully consider their risk tolerance and invest accordingly.