Over the past 2 years Bitcoin and other cryptocurrencies have been hammered as investors headed toward the exits. Major brokers were in flux in 2022 when Binance refused to buy out Sam Bankman-Fried’s FTX exchange. Some experts warned that Bitcoin could fall as low as $9,000.
Simply put, the Bitcoin bubble burst in 2022, collapsing from $65,000 all the way down to $15,000 per unit.
All of the sudden, Bitcoin and other cryptocurrencies rebounded in 2023.
Sin January, Bitcoin has shot up from $17,000 to $28,000 in the first quarter alone. That’s a staggering 65% increase in value in just over 3 months.
Some of the possible reasons for this include:
- The collapse of Silicon Valley Bank, Signature Bank and the takeover of Credit Suisse. With fears of banking collapse contagion in the waters, investors may have turned to Bitcoin as a safe haven investment.
- Others may have seen Bitcoin as a steeply discounted investment play after its price tanked following the FTX debacle.
- Still others saw Bitcoin as a hedge against inherent problems with the Federal Banks. Interest rate hikes also may have made crypto currencies a more attractive investment
What does the future hold for Bitcoin, Ethereum and other major cryptos? That’s anyone’s guess. It is still trading at greater than a 50% discount to its previous all-time high of $65,000 and the journey of cryptos has been a roller coaster ride.
Stay tuned to see how Bitcoin fares for the remainder of 2023.