Bitcoin rose above $30,000 for the first time since June 2022, bringing its gains to more than 80% since the beginning of the year.
The rally is sharper than the nearly 20% gain in the Nasdaq 100, which Bitcoin tends to move in tandem with. And while the currency has made up for some of the losses of 2022 after a series of cryptocurrency-related crises, it is still more than 50% below its all-time high in November 2021.
The 30,000 level is very important for technical and fundamental reasons, according to Mattie Greenspan, CEO of Quantum Economics. The resistance level was anticipated for three consecutive weeks and has now finally been breached. This is the first time we have gone above this level since the Terra/Luna and Three Capital Arrows crash. This basically means that the price has fully recovered from the Celsius crisis, FTX, and the US crackdown by the regulators.
To be sure, the cryptocurrency industry continues to face tremendous scrutiny. Coinbase Global said it received a notice from the Securities and Exchange Commission announcing its intent to take enforcement action. The commission sued a cryptocurrency mogul, Justin Sun, for allegedly violating securities rules in a case Sun said lacked evidence. Elsewhere, the US CFTC sued Binance founder Changpeng Zhao and his cryptocurrency exchange for alleged violations of derivatives regulations, and Binance responded by saying it did not agree with many of the commission's characterizations.
But even with these setbacks, Bitcoin's rally has gained steam over the past month after the collapse of three US banks, reviving the narrative among Bitcoin supporters that the digital currency offers a more attractive alternative to traditional finance.
Moreover, analysts say liquidity plummeting to a 10-month low after market makers lost access to US banking channels provided by Silvergate Capital and Century Bank may also explain the rebound, even if it is only partially justified. With lower trading volume, the price change can be more intense.
Strahinja Savik, Head of Data and Analytics at FRNT Financial, said order books are weak and trading activity is low. Under these conditions, it is possible to see the price movement, but it is difficult to return this movement for one reason.
