Bitcoin capitalizes on financial market turmoil

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After a tumultuous weekend, things have calmed down a bit and the stock markets are back on a recovery course. For once, the “crypto key currency” Bitcoin has not been affected by the direction of the financial markets.

The course reported a 14 percent increase in one week. The blockchain currency is currently trading at $28,200. The increase in value since the beginning of the year thus corresponds to an increase of approximately 68 percent. A bitcoin was last worth today in June 2022.

Bitcoin advocates therefore see their time has come. According to fans, Bitcoin, which emerged during the global financial crisis in 2008, is now the only real tool to protect against the collapsing financial system.

The former head of technology at the largest US crypto exchange, Coinbase Balaji Srinivasan, went so far as to offer a bet worth millions on Twitter. The man who has significant influence in the tech and crypto world has promised $2 million if Bitcoin doesn’t reach $1 million within 90 days.

Meanwhile, most other market watchers are a little more cautious. Bitcoin, of course, can benefit from turbulence in the markets in the short run, but in the long run it is questionable whether the cryptocurrency can withstand systematic upheavals, hence the tenor.

According to Matteo Bottacini of Crypto Finance, the thesis that Bitcoin was the winner of the crisis is now bearing fruit. However, in the midst of a complex economic environment, many uncertainties need to be taken into account.

Bottacini says that although there is no new global financial crisis on the horizon, there are many problems and many components of the system are held together with only “a little glue”. So “turning everything upside down” doesn’t take much anymore. But in general, the analyst, in connection with the thesis, describes the Bitcoin rally as a “cliche” as a new world currency.

Analyst Ipek Ozkardeskaya of the online bank Swissquote thinks similarly. The course development shows that Bitcoin can act as a hedge against global banking stress. How sustainable the profits are, however, remains to be seen.

Meanwhile, it is undisputed that Bitcoin’s market dominance is increasing in the cryptocurrency market. The largest cryptocurrency currently accounts for 45 percent of the market cap. According to crypto data portal CoinGecko, the total market for around 11,200 cryptocurrencies currently totals $1221 billion. Of that, 545 billion is explained by bitcoin.

(SDA)

Source :Blick