Bitcoin breaks the $30,000 mark for the first time since June 2022

Bitcoin price rose above $30,000 on Tuesday for the first time since June 2022. Since the lows late last year, the cryptocurrency has almost doubled in value. According to market observers, the increase will be aided by factors such as a possible loss of confidence in the US dollar.

Bitcoin climbed to a high of $30,450 overnight. This means that the price is up about 6.5 percent in the last 24 hours alone. The cryptocurrency is currently trading at $30,150. In the past 30 days, the gain has risen to more than 30 percent.

Doubts about the dollar

At the end of last year, a bitcoin was still trading for less than $15,500. The current market cap is over $580 billion.

From the highs reached in late 2021, the most famous cryptocurrency is still a doubling away. On November 10, 2021, a bitcoin was the most expensive to date with a good $69,000 and then dropped to $20,000 within six months.

However, over the course of the year, the cryptocurrency has so far repeatedly resisted the uncertainties in the financial markets. “It appears that bitcoin investors are unfazed that the US Federal Reserve is likely to raise interest rates again and that the US economy is headed for recession this year,” said Oanda analyst Edward Moya.

Apparently, the market is betting that the US dollar will slowly lose some of its status as a preferred reserve currency and Bitcoin could be one of the beneficiaries. However, dissenting market voices suggest that the low trading volumes probably at least benefited the most recent increase.

Bitcoin without banks

However, the crisis at many banks supported the Bitcoin story. “There is definitely a change in the perception of Bitcoin due to the banking crisis,” Banxa’s Richard Mico told industry portal Coindesk. Bitcoin is also increasingly seen as a store of value that doesn’t struggle with the problems facing banks, said Mico, who heads the Canadian payment infrastructure provider’s U.S. operations.

The market value of all 10,000 blockchain currencies listed on the CoinGecko data portal is currently just under $1.029 billion. In November 2022, this figure was sometimes less than $800 billion.

(awp/sda)