Bitcoin is trading above the $30,200 mark! The leader of the crypto market on Tuesday set a new price high for the year 2023. Notably, Bitcoin touched the psychological mark of $30,000 for the first time since June last year. The current year has been fruitful for the crypto as it has gained nearly 84% so far, making Bitcoin top-performing asset in the respective market in Q1 of 2023. The latest sharp rally does indicate a growing interest in cryptocurrencies among Indian investors.
At the time of writing, Bitcoin traded at $30,244.20 -- up by 6.15%. The crypto has touched an intraday high of $30,293.32 --- which is also the 30-day high level.
It is also the top trending cryptocurrency on Tuesday. Bitcoin's dominance surged by 0.83% to 47.15% in the market compared to the previous day, as per CoinMarketCap.
Bitcoin has gained by nearly 8% in seven trading sessions.
Rahul Pagidipati, CEO, ZebPay on Bitcoin said, "Bitcoin has been on an upward trajectory since the beginning of 2023. On Jan 1st, Bitcoin began trading at roughly $16,500. As of 11th April, the asset has been trading above the $30,000 mark which is close to an 80% gain since Jan 2023. This is the first time since June 2022, that Bitcoin has reached this level. If the asset sustains above the key psychological resistance level of $30,000 we might see the price rise further."
While CoinDCX Research revealed that Bitcoin has surpassed the $30,000 level for the first time since June 2022, setting a new price high for 2023. In the last 30 days, Bitcoin has seen significant gains of almost 50%, reaching its highest level in 10 months on 11th April 2023.
As per CoinDCX, the rise can be attributed to various factors such as growing inflation in the US, banking sector instability, and uncertainty surrounding stablecoin. Many investors are betting against the declining value of the US dollar and investing in Bitcoin as a hedge against inflation.
Bitcoin has been the top-performing asset class for Q1 2023, recording a gain of nearly 70%.
This has led to a surge in institutional adoption, with big players like MicroStrategy accumulating around 1,40,000 Bitcoins, one of the largest corporate holders as on date. Additionally, CoinDCX Research explained that the narrative around the next Bitcoin halving, scheduled for April 2024, is also starting to pick up, which has historically been a bullish signal for Bitcoin and crypto markets.
Meanwhile, Parth Chaturvedi, Crypto Ecosystem Lead, CoinSwitch said, "As the US economy faces an increasing probability of a “hard landing", while high interest rates continue to add fuel to the banking crisis, investors are turning to safer asset classes, like Gold. Despite the banking challenges being faced by crypto companies in the US, the surge in Bitcoin prices persists and it is truly “decoupling" from traditional finance."
Additionally, if looked at BTC’s historical price cycles, Chaturvedi said, "we are almost a year away from the next halving of rewards, which typically marks the start of a bull run lasting for at least a year post-halving. Increasing prices are usually coupled with an increase in trading volumes. Hence, it could be said that investors are warming up to Bitcoin. We can expect further growth in its prices."
Going ahead, Pagidipati said, "irrespective of the near-time price gains and falls, we believe Bitcoin is a fundamentally strong asset with remarkable potential in the long run."
But Rajagopal Menon, Vice President, WazirX points out that despite Bitcoin crossing $30,000 for the first time since June 2022, "there has been no spike in volumes at WazirX and most trading volumes have been rangebound."
Menon revealed that while there is muted celebration, most traders still believe that the market is in the middle of a bear run.
As per WazirX VP, as the crypto-world braces itself for the next Bitcoin halving, estimated to occur around May 4, 2024, when Bitcoin reaches 840,000 blocks, traders are bracing themselves for a period of mini-bull runs and potential drawdowns. This halving event marks the fourth protocol-designed 50% reduction in block rewards, which happens every 210,000 blocks or approximately every four years.
That being said, Menon mentioned "the upcoming halving is poised to reduce the rate at which new Bitcoin is created, resulting in a lower available supply and increased scarcity. This could lead to higher demand and, as a result, a potential surge in Bitcoin's price. The implications of such a significant event have many speculating and watching the markets with bated breath."
Investors should keep a track of the U.S. Consumer Price Index (CPI) report for March which comes on April 12 and will also provide key insight into the Federal Reserve's battle against inflation, further affecting the crypto market.
ZebPay CEO said, "This week’s US Consumer Price Index(CPI) data could potentially impact this trend further. If the CPI data encourages the Fed to pause interest rate hikes, it can bolster the price of Bitcoin."
How Bitcoin performs ahead will be watched keenly. But for now, the $30,000 mark is said as positive development for Indian crypto markets.
Punit Agarwal, Founder of KoinX, a crypto taxation platform, said, "The recent news of Bitcoin reaching the 30,000 dollar mark for the first time since 2022 is a positive development for the Indian cryptocurrency market." In his view, this indicates a rising interest in cryptocurrencies among investors in India, which could lead to more investment opportunities in the crypto space and Web 3 space on the whole.
Lastly, Agarwal concluded in regards to domestic crypto market, "as cryptocurrencies gain more mainstream acceptance with the new upcoming regulations, they could contribute to the overall growth of India's digital economy, providing benefits such as faster and cheaper cross-border transactions, increased financial inclusion, and more innovation in the financial sector. The potential benefits of cryptocurrencies make it an exciting space for investors and businesses alike."