April 11, 2023 (MLN): Bitcoin (BTC) has broken above the $30,000 level for the first time since June 2022, amid a strong rally in the cryptocurrency market. The leading digital asset is currently trading at $30,294.86, up 1.58% on the day and 82.17% year-to-date.
BTC is widely regarded as a digital alternative to gold, especially in times of market uncertainty and volatility.
BTC’s surge came after it recovered from a steep decline in November 2022, when the second-largest cryptocurrency exchange FTX collapsed. According to GCR, a prominent trader on Crypto Twitter, this was one of the most evident bottom formations in years of financial market analysis.
Michael Saylor, one of the largest institutional investors in Bitcoin and the CEO of MicroStrategy (MSTR), is finally close to breaking even on his massive investment of 140,000 Bitcoin, or around $4.17 billion. MicroStrategy acquired Bitcoin at an average price of $29,803 per coin, as per the statement issued by the company on April 5.
One of the main drivers of BTC’s performance was the collapse of the banking sector in the US, which triggered a flight to safety among investors. Gold also benefited from this situation, as a traditional safe-haven asset.
Investors now await CPI data release, Tina Teng, a markets analyst at CMC Markets, said that the bank turmoil in early March had increased the expectations of a sooner Fed rate hike.
Ethereum (ETH), the second-largest cryptocurrency, also gained 60.49% year-to-date and is trading at $1919.78, up 0.51% on the day.
ETH is preparing for a major upgrade on Wednesday, 12th April, which will coincide with the US CPI data release. The upgrade, known as Shanghai, will allow users to withdraw about 18 million ETH (worth $33 billion) that they had staked on the blockchain since late 2020. Staking is a process that involves locking up ETH to secure the network and earn rewards.
There are mixed reviews of this amongst market participants, with some fearing that the unlocking of staked ETH will lead to a sell-off and put downward pressure on ETH’s price.
Copyright Mettis Link News
Posted on: 2023-04-11T14:15:46+05:00
