Bitcoin about to end best quarter of past two years with 70% profit
Last Updated on 5 November 2023 by CryptoTips.eu
Although most stock markets have had a bad start to the year and the global banking crisis still seems unresolved, with fears lingering over Deutsche Bank and rising interest rates, Bitcoin is about to finish a fabulous first quarter.
After a lousy 2022 plagued by scandals over Terra and FTX and pushed down in correlation to tech stocks, Bitcoin is doing a whole lot better this year. Ether will likely close out the first quarter of 2023 with a gain of 50%. Bitcoin fares even better, reaching 70% gains.
Banks help Bitcoin
At the start of 2023, experts thought that Bitcoin would soon fall to as low as $12,000, after the value of the largest digital coin had collapsed to a temporary low of around $15,500 following the FTX scandal in November 2022.
However, this did not happen and although the first week of January was still a bit hesitant, it started to look very positive for Bitcoin after that. Soon enough $20,000 was broken again and then it moved towards $25,000.
February ended flat and in early March, when Silvergate bank went bankrupt and everyone blamed crypto for that bank’s failure, Bitcoin’s price dropped to around $20,000.
Safe haven
However, when Silicon Valley Bank also collapsed and then the problems at Credit Suisse became apparent, more and more investors began to see Bitcoin as a safe haven again.
The price of the largest digital currency soared, reaching a yearly high of around $29,000 to date, representing a 70% gain from the start of the year.
The uptick puts Bitcoin in a clear lead over Ether, the second-largest cryptocurrency by market value, which appears to be on track for a 50% quarterly gain. Gold rose 7% in the same period.
