One of the most popular traded cryptocurrencies in the market, Bitcoin, has soared to $30,000, its highest price recorded since June 2022.
In the last 30 days, BTC recorded gains of nearly 46%, rising to its highest level in ten months on April 11. Bitcoin’s breakout above stiff resistance at $30,000 comes after a so-called squeeze of the Bollinger Band, which saw historical volatility fall to the lowest since January.
Quantum Economics chief executive officer Mati Greenspan said, “30k is very significant for both technical and fundamental reasons. The resistance has been building up for three weeks straight and has now finally broken.”
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Apart from the increase in price, Bitcoin stocks pulled ahead as well, with Coinbase adding 7.6% in the Monday session, crypto miner Marathon Digital adding 14% and the Grayscale Bitcoin Trust (GBTC) adding 5.7%. The cryptocurrency bulls’ next target will be 31k, where Binance’s order book shows the highest concentration of selling pressure. Buying support is pitched at 29k and US$28,500.
Before hitting its recent price, some analysts had predicted that the cryptocurrency would regain its $30,000 price tag as traders await the United States Consumer price index (CPI) report on April 12, which will give insight into the Federal Reserve’s battle against inflation.
Meanwhile, according to an NYDIG research report, Bitcoin recorded an excellent 71.9% gain and outperformed every other asset class in the first quarter (Q1) of 2023. The recent rise of Bitcoin has been attributed to the worsening economic conditions which may lead to the adoption of a decentralized asset among investors, some opine.
Speaking on Bitcoin’s recent rise, the CEO of the Bitcoin rewards app Lolli, said,
“Bitcoin has effectively decoupled from the traditional markets since the start of the year, up over 80% while stocks have slumped. Bitcoin’s strength compared to the traditional market shows that investors are increasingly shifting their capital into Bitcoin, choosing it instead of traditional investments to build their wealth.
“The fact that today’s rally did not have a clear catalyst is a bellwether of Bitcoin’s newly bullish market conditions and strong investor confidence. Bitcoin’s ongoing strength suggests that Bitcoin is emerging from the so-called ‘crypto winter’ into a new phase of strength and renewed interest from retail and institutional investors”.
This year, cryptocurrency has been rallying, as Monday night action brought Bitcoin’s year-to-date gains to more than 80%, while Ethereum has also added 60% for the year so far after crossing the $1,900 level before retreating. Price action from the two crypto assets has historically been tracked relatively in line on a percentage basis. The two cryptocurrencies remain somewhat correlated for the time being and macro drivers continue to influence both assets.