Bitcoin, the world’s largest cryptocurrency, has grown by 50% this year despite the collapse of the big crypto banks, outperforming the major stock market indices and commodities.
On Tuesday Bitcoin rose to a nine-month high of $26,533, while today, Wednesday, it was hovering around $25,000, thanks to a rally that began on Sunday.
The price surge this year comes after bitcoin fell 65% in 2022, following a series of major project and hedge fund crashes, bankruptcies, liquidity problems and the failure of FTX, one of the world’s largest cryptocurrency exchanges.
Industry insiders said the expectation of a slower rate hike from the Federal Reserve is helping bitcoin.
Gold has risen just over 3% this year
Gold, which is seen as an asset that investors flock to in times of market turmoil, has risen just over 3% this year.
What the co-founder of crypto trading platform Nexo said
“Bitcoin’s 50% rise in 2023 reflects how battered it was after the FTX collapse, the change in interest rate outlook and the failure (and resurrection) of SVB,” Antoni Trenchev, co-founder of crypto trading platform Nexo, told CNBC.
From its peak of nearly $69,000 in November 2021, bitcoin is still down more than 60%.
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