According to financial analyst James Turk, Bitcoin has survived the latest cryptocurrency winter.
As one of the few digital currencies, Bitcoin has fared reasonably well despite the prolonged market downturn this year.
Investors continue to like Bitcoin due to its stable price and strong growth in hash rate and transaction volume. Turk believes this resilience is due to its first-mover advantage in crypto.
Despite severe competition from rival coins, investors still see development potential in one of the first digital currencies.
Thanks to blockchain technology, users can keep assets securely without worrying about hacking or fraud. The world of cryptocurrency has taken many unexpected turns in recent years.
Most Popular Cryptocurrency
Bitcoin, the most popular cryptocurrency, has started to move with gold rather than tech equities.
Anthony Turk, the founder, and managing partner at Altcoin Capital noted this departure from its usual behavior.
Turk says traditional technology equities are strongly related to equity markets and react swiftly to news and market moves.
Bitcoin reacts more slowly than tech equities and appears to be linked to gold prices.
He thinks Bitcoin will become an asset class independent from technological businesses and traditional investments like shares and commodities.
The world’s biggest cryptocurrency is experiencing a surge that has brought it to its much-coveted $21,000 level.
Investors are more optimistic that Bitcoin may have reached the bottom of the negative cycle, which drove this huge increase. U.S. inflation appears to be peaking, which is good for risk assets like Bitcoin.
The increase in demand for Bitcoin has been extraordinary and shows no signs of slowing down any time soon.
Many investors view Bitcoin’s current trajectory as proof that cryptocurrency will remain an integral part of economic life in the future.
Risk assets like cryptocurrencies are expected to rise in 2023 and beyond due to rising U.S. inflation. This year, the cryptocurrency market has been volatile, with Bitcoin (BTC) leading the charge.
BTC’s price fluctuated, while other important coins like Ether (ETH), Cardano (ADA), and Dogecoin (DOGE) also rose. However, Bitcoin has so far managed to outperform them all in terms of price appreciation.
As institutional investors continue to invest in cryptos, all four have grown significantly in recent weeks.
Dogecoin surged 1,400% from $0.006 in late December 2020 to $0.085 in mid-April 2021, while Ethereum rose over 150%.
Cardano’s ADA token also saw an impressive surge to a higher level. The cryptocurrency market capitalization has risen above $1 trillion for the first time in over two months.
Since early 2021, the crypto sector has made significant advances, leading to this monumental milestone.
Beginning with Bitcoin’s new all-time price high at over $58,000 per coin in mid-February, the surge didn’t stop there.
Ethereum Rises to New Heights
In the following weeks, Ethereum reached record highs, and other cryptocurrencies like Cardano began to recover.
This has pushed the crypto market’s valuation above $1 trillion for the first time since late December 2020. The Bitcoin market faced an uphill battle in 2022.
Investors were worried due to a poor macroeconomic climate and crypto scandals, resulting in severe bitcoin losses. After the FTX debacle, bitcoin fell to $15,000—its lowest price since 2021.
Analysts were quick to point out that a combination of factors contributed to Bitcoin’s slump in 2022.
The epidemic and other worldwide disasters slowed economic development, making investors wary of riskier assets like cryptocurrencies.
Many institutional investors pulled their investments from cryptocurrencies after significant industry participants were accused of fraud and money laundering.
The FTX disaster only served as a further reminder that cryptocurrency markets are unpredictable and subject to high volatility.
First, global investors avoided riskier investments like Bitcoin due to economic uncertainty caused by Western-Chinese hostilities.
Secondly, numerous nations have tightened cryptocurrency restrictions, making it harder for potential investors to access trading platforms.
Finally, cryptocurrency trading decreases as more people learn about the risks of investing in Bitcoin and other digital currencies.
These conditions created an adverse atmosphere for Bitcoin investment, which caused its value to decrease dramatically in 2022.