Bitcoin (BTC) recaptured the $29,000 zone for a few trading sessions recently. The widely-held crypto gained over 3.5% in the last week. Why is BTC-USD at levels not seen since June 2022?
Bitcoin is the most resilient digital coin. It survived multiple bankruptcies of cryptocurrency platforms in the last year. The FTX fraud and bankruptcy only temporarily sent BTC-USD lower. It is higher because the return of the bullish stock market encourages crypto traders to take the risk.
As of March 31, 2023, Nasdaq, through the ETF (QQQ), gained over 20%. The official bull market rally reversed the cautious mood for Bitcoin. Bitcoin holders are not concerned about a crackdown on cofounder and CEO Changpeng Zhao. Zhao, who founded Binance, may face punitive fines in a few years. However, Binance is a global firm that runs the largest cryptocurrency exchange. Regulators did not signal any aggressive moves to restrict the exchange.
The liquidity from Bitcoin and Ethereum should help them retain their current levels. XRP and Cardano are also rebounding sharply. The strong performance indicates a demand for alternative digital currencies. Investors that do not want exposure to failing banks continue to assign value to digital currency. The economy ultimately benefits from people having the choice to use XRP, Cardano, Ethereum, and Bitcoin.
