Bitcoin rose above $30,000 for the first time since June as investors grew more bullish on the US Federal Reserve’s monetary policy ahead of key inflation data later in the week.
The top crypto by market capitalization peaked at $30,438 on Monday, but then fell back to $30,051 around 09:20 GMT on Tuesday, according to CoinDesk.
Bitcoin is up more than 80% since January 1. It started the year at around $16,600 after a turbulent 2022 that saw nearly $1.4 trillion wiped out in the crypto market amid industry bankruptcies.
Crypto experts say Bitcoin is likely to grow further after breaking through the psychological $30,000 threshold, especially if market expectations of the US Fed easing monetary policy come true.
James Lavish, managing partner of the Bitcoin Opportunity Fund, told CNBC that there is speculation among traders that the upcoming Consumer Price Index data “could get to a level that gives the Fed reason to consider pausing rate hikes at the next meeting, giving assets like Bitcoin a boost.”
After the recent stock market upheaval caused by the US banking crisis, some analysts have hinted that Bitcoin is likely to gain”growing appeal as a safe haven for investors.
“While 2020-2021 was seen as Bitcoin’s defining moment, the present time truly marks its rise on the world stage as a tremendous asset.Bob Ras, co-founder of Sologenic, a blockchain system for asset tokenization, said in an email to CoinDesk.
“Amid increased geopolitical instability, failing banking systems, and growing concern over reserve currencies, Bitcoin has become the reliable haven many anticipated.,” he added.
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