Bitcoin Picks Up Speed With Investors Despite Banking And Fed Worries
It seems that concerns surrounding, increased regulatory activity, federal monetary policy, along with banking instability have been overblown.
Despite a dip in value following a Federal Reserve interest rate hike that left some disappointed, Bitcoin has quickly regained momentum, with investors pushing its value back up above $28,000.
This is particularly noteworthy given that hopes were high earlier in the week for a decrease in central bank hawkishness, and yet BTC has managed to surpass those levels.
BTC Has Experienced an Impressive Rise
As of now, Bitcoin is trading at about $28,393, which represents a 3.8% increase over the past 24 hours. Although it has retreated slightly from the $29,000 mark earlier in the day, it’s important to note that Bitcoin has risen an impressive 22% this month alone.
While there have been attempts at regulation by enforcement in the crypto ecosystem, and the banking crisis has affected banks that serve the crypto community, it appears that investors are still flocking to Bitcoin.
According to Benoit Bosc, global head of product at crypto trading firm GSR Markets, Bitcoin has been the biggest beneficiary of this trend and has rallied significantly since the onset of these events.
Even with the Federal Reserve refusing to consider any cuts or pause in the cycle of hikes, BTC has managed to maintain its upward trajectory.
As the crypto ecosystem continues to face challenges, Bitcoin’s resilience and growth are a testament to its enduring appeal to investors.
Bosc explained that the recent market downturn was triggered by comments from Fed Chair Jerome Powell and U.S. Treasury Secretary Janet Yellen.
Both expressed concerns about inflation, with Powell failing to provide any guarantees that the bank would not be raising interest rates in the future.
This lack of reassurance, coupled with Yellen’s refusal to commit to protecting all bank deposits without Congressional approval in the event of a wider sector collapse, sent shockwaves through the market.
As a result, nearly all risk assets, including cryptocurrencies, were impacted by the market turmoil. The cryptocurrency industry continued to face challenges, as evidenced by recent incidents of fraud and enforcement action.
BTC Remains Resilient
Terraform Labs founder Do Kwon was charged with fraud by New York federal prosecutors shortly after being arrested by police in Montenegro. Meanwhile, the SEC warned Coinbase that it was pursuing enforcement action against the exchange.
Despite these misdeeds, Bitcoin has remained remarkably resilient. Ilya Volkov, CEO of YouHodler, noted that crypto has become an integral part of the global financial markets and expressed optimism about its future.
Benoit Bosc of GSR Markets also shared this positive outlook, citing Bitcoin’s ability to shrug off negative events and maintain its stability at an elevated level.
He noted that the market has remained strong in the face of challenges that would have previously decimated it. Bosc believes that this bodes well for the future adoption of crypto and that there could be a significantly faster adoption than previously anticipated.
Overall, the cryptocurrency industry may be facing some headwinds, but the resilience of Bitcoin and the positive outlook of industry experts suggest that the future of crypto remains bright.
A Look at Bitcoin’s Potential in the Future
Bitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority. Over the years, it has gained the attention of investors due to various reasons.
Recently, a report revealed that an astonishing more than eighty-two percent of millionaires across the globe are now seeking advice on Bitcoin investment.
The report suggests that eight out of 10 high net worth individuals have consulted their financial advisers about incorporating cryptocurrencies, such as Bitcoin, into their portfolios over the past year, despite the market experiencing a difficult year.
Final Thoughts
Despite its highly speculative and volatile nature, the growing mainstream acceptance and increasing institutional adoption of Bitcoin have made it a focus for investors looking for alternative investment opportunities. With all of this in mind, it would not be surprising to expect BTC to gain more traction this year and beyond.
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