Bitcoin is already over $30,000. The most popular cryptocurrency is having a spectacular start to the year, with a rise of more than 82%. In the midst of economic uncertainty, Bitcoin is having a more than positive result.
Breaking the resistance of $30,000. At the time of writing this article, Bitcoin is trading at $30,123, up 45.90% in the last month. It is still well below the record at the end of 2021, but the price of Bitcoin has returned to a good path in 2023. By comparison, the Nasqad 100 has grown 19% since the start of the year.
Breaking through the $30,000 resistance is considered a milestone for investors, as it is considered a point of stability, according to describe analysts to Bloomberg.
Bitcoin moves away from the turbulence of the crypto sector. Since the problems with Luna and FTX, the cryptocurrency sector has been surrounded by controversy. The SEC is immersed in a regulatory process and companies like Binance are in the eye of the hurricane. However, Bitcoin seems oblivious to it. In January it broke $20,000 and now it has broken another long-awaited barrier again.
If traditional banks suffer, Bitcoin rises. The fall of Signature Bank and the collapse of Credit Suisse have hinted that the position of traditional banks is not as solid as such high interest rates may suggest. Criticism has been raised even from the powerful German Deutsche Bank. Faced with these problems, Bitcoin has always positioned itself as an alternative to the traditional financial system.
The price has risen, but there is no longer so much liquidity. According to Conor Ryder, from the data analysis company Kaiko, the liquidity level of Bitcoin is at its lowest point in the last 10 months. This causes investors to have been paying more for the different operations. That is, the price of Bitcoin has risen this year, but there is not as much movement as before.
This has a (dangerous) impact on volatility. As there is less liquidity, it implies that there are fewer investors participating in the Bitcoin trading operations. And therefore, it also points out that the influence of these investors is greater. Less liquidity implies greater volatility, so despite the fact that it is rising during these months, the situation could turn around quickly.
Image | javier esteban
