Bitcoin rebounds 80% in 2023 amid US banking system turmoil
Cryptocurrencies are making a comeback in 2023, with Bitcoin rallying by 80% above last year’s value, despite still being almost 50% down from its record high of US$69,000 in November 2021. This resurgence is partly due to improving macroeconomic conditions and the deteriorating state of the US banking system, which has led investors to seek alternatives to traditional financial instruments.
Jirayut Srupsrisopa, founder and CEO of Bitkub Capital Group Holding Co Ltd, Thailand’s leading cryptocurrency platform, commented on the challenges faced by the cryptocurrency market in recent years, including the collapse of major exchanges like Luna, FTX, and Three Arrows. He also mentioned the ongoing issues in the US banking system, with 327 smaller banks still at risk due to liquidity mismatches.
“In Thailand, the trading volume averages 1 billion baht per day now, but during the peak, Bitkub used to post 4 billion baht,” said Srupsrisopa.
As the cryptocurrency market recovers, some analysts predict that Bitcoin may reach $35,000 later this month. Bitkub anticipates a surge in volume, activity, and price movement once the market enters a “golden year” in 2024, becoming more bullish based on statistics that indicate the first price peak occurred after Bitcoin’s halving started in 2013, followed by subsequent waves in 2017 and 2021.
“On a micro level, a Bitcoin halving is expected in April 2024. The years when a Bitcoin halving occurs are dubbed a golden year,” said Srupsrisopa. “Next year will be interesting because the target inflation range should return to 2% in the US, meaning the Fed is likely to stop raising interest rates.”
Cryptocurrencies such as Bitcoin and Ethereum have become a new asset class for the world, with Srupsrisopa suggesting that gold and Bitcoin are viewed as a safe haven for many wealthy individuals who are losing trust in the US fiat system and looking for asset diversification.
“We are in a most exciting era. If you study the history of the monetary revolution, the monetary system changes every 50 years,” Srupsrisopa said. “I believe there will be an upgrade from fiat to digital currency, which will be adopted as the accepted monetary option.”
According to Grand View Research, the global cryptocurrency market was valued at $4.67 billion in 2022 and is expected to expand at a compound annual growth rate of 12.5% from 2023 to 2030.
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