Bitcoin rebounds 80% in 2023 amid US banking system turmoil

Cryptocurrencies are making a comeback in 2023, with Bitcoin rallying by 80% above final year’s worth, regardless of nonetheless being almost 50% down from its document high of US$69,000 in November 2021. This resurgence is partly as a end result of bettering macroeconomic conditions and the deteriorating state of the US banking system, which has led investors to seek alternatives to conventional financial instruments.
Jirayut Srupsrisopa, founder and CEO of Bitkub Capital Group Holding Co Ltd, Thailand’s main cryptocurrency platform, commented on the challenges confronted by the cryptocurrency market lately, together with the collapse of major exchanges like Luna, FTX, and Three Arrows. He additionally talked about the continued issues in the US banking system, with 327 smaller banks still in danger as a end result of liquidity mismatches.
“In Thailand, the buying and selling quantity averages 1 billion baht per day now, but during the peak, Bitkub used to post four billion baht,” said Srupsrisopa.
As the cryptocurrency market recovers, some analysts predict that Bitcoin may attain $35,000 later this month. Bitkub anticipates a surge in volume, exercise, and price movement once the market enters a “golden year” in 2024, becoming more bullish based mostly on statistics that point out the primary worth peak occurred after Bitcoin’s halving began in 2013, followed by subsequent waves in 2017 and 2021.
“On a micro degree, a Bitcoin halving is anticipated in April 2024. The years when a Bitcoin halving occurs are dubbed a golden 12 months,” stated Srupsrisopa. “Next 12 months might be attention-grabbing as a end result of the target inflation range should return to 2% within the US, which means the Fed is prone to cease elevating rates of interest.”
Cryptocurrencies corresponding to Bitcoin and Ethereum have turn out to be a new asset class for the world, with Srupsrisopa suggesting that gold and Bitcoin are considered as a protected haven for many rich people who’re dropping belief in the US fiat system and in search of asset diversification.
“We are in a most exciting period. If Illusive of the monetary revolution, the monetary system modifications every 50 years,” Srupsrisopa mentioned. “I believe there will be an upgrade from fiat to digital foreign money, which will be adopted as the accepted monetary choice.”

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