• Bitcoin has had a successful 2023 thus far, spiking from $12,000 in the last three months.
• Analysts believe that the rise of bitcoin is due to banking failures in America and other factors such as central bank hikes and credit costs nearing their peak.
• Others are dismissive of the idea that BTC is doing well because banks are not, but that confidence in the banking system has been damaged.
What’s Really Making Bitcoin Spike?
Bitcoin has had a very successful 2023 thus far, with its value spiking by as much as $12,000 in the last three months. This is despite its all-time high of around $68,000 per unit being reached back in November 2021 during which time it lost more than $2 trillion in valuation.
Analysts Weigh In
Analysts believe that the rise of bitcoin can be attributed to banking failures in America as well as other factors such as central bank hikes and credit costs nearing their peak. These events have caused many people to look for alternative methods of investing or gaining capital and bitcoin has become a major answer for several investors. Some analysts are dismissive of this idea however, believing instead that confidence in the banking system has been damaged.
The Macro Narrative
Noelle Acheson – an economist tracking crypto for seven years – believes that “the macro narrative” is really behind bitcoin’s success and she states that it is arguably “the most sensitive to monetary liquidity out of all risk assets”. She also explains her belief that bitcoin will eventually replace credit cards, checks and fiat currencies as the ultimate payment method which could be helping fuel investor confidence too.
Confidence Is Key
Usman Ahmad – CEO of Zodia Markets – states that while he doesn’t agree with those who say bitcoin will succeed because a bank failed, he does understand why confidence plays such an important role when it comes to digital currency investing decisions made by individuals today.
What’s Next For Bitcoin?
It remains to be seen what will happen next for bitcoin but one thing is certain; it looks like it’s here to stay for now! With investors gaining more confidence every day, it wouldn’t be surprising if we see even bigger gains from this asset before long.