Bitcoin Rally – The Rise in Bitcoin Value
Cryptocurrency has not had the greatest year by any means. Public distrust rose rapidly following the FTX scandal that everyone is familiar with, showing crypto wasn’t as strong and safe as we thought it was. Many other crypto firms went under throughout this time period, and it seemed as if this would be the time period that got the waste out of the industry.
It’s not to say that the crypto industry is now perfect, but things are starting to turn around, especially for the well-known Bitcoin. Bitcoin has been on a tear during 2023, rising by more than 70 percent since the beginning of the year and nearly 40 percent since Silicon Valley Bank failed. Bitcoin and other cryptocurrencies had a tendency to move with the broader markets and the tech industry specifically, but this has changed since the banking crisis started as tech shares have nosedived, and for good reason. Silicon Valley Bank funded many tech startups, hence its name, and its collapse has had negative effects on the financial future of many companies in that area. However, Bitcoin and blockchain as a whole is one of the technologies that is very popular in Silicon Valley, and many of the regional banks who collapsed had ties to the cryptocurrency industry.
In normal times, crypto would be falling in this situation too, but the reason why Bitcoin is surging is due to the revival of crypto’s original sentiment: an alternative to the big banks. Confidence in crypto as an alternative has increased due to the possible benefits of decentralized banks running on cryptocurrencies like Bitcoin. Others view the potential pause of interest rate hikes as a reason to be bullish on crypto, but it is also important to note that there have been a large amount of bets against Bitcoin in recent days as many expect this rally to cool off in the near future.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.