Bitcoin climbed above $30,000 for the first time since June, bolstered by bets on easier monetary policies that have made cryptocurrencies standout performers this year.
Bitcoin is now up 82% since Dec. 31, handily beating the tech-heavy Nasdaq 100’s 19% gain. Gold, another investor favorite this year, has climbed around 10%. Crypto’s rapid ascent has seen Bitcoin vault past where it stood when hedge fund Three Arrows Capital imploded last summer — yet it remains more than 50% below its all-time high in November 2021.
“30K is obviously a psychological magnet now,” said David Brickell, director of sales at Paradigm. “The bigger question is why is BTC not higher,” he said, adding that the coin looks to be ready to “take the next leg higher.”
Underpinning Bitcoin’s partial comeback are expectations that the banking crisis that erupted in the US in March will force the Federal Reserve to hit pause on rate increases. That’s boosted the view among Bitcoin bulls that the token stands to gain from lower real interest rates, and that it offers shelter from turmoil in traditional finance.
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