Bitcoin prices reached their highest point in ten months of trading today. The value of the most popular cryptocurrency has nearly doubled this year.
Bitcoin has moved above $30,000 for the first time since June as investors become more optimistic about the US Federal Reserve’s monetary policy before this week’s important inflation data.
According to CoinDesk, the top cryptocurrency by market capitalization peaked on Monday at $30,438 but fell to $30,051 around 9:20 a.m. GMT on Tuesday.
Since January 1, Bitcoin has gone up more than 80%. It started the year at around $16,600 after a rough 2022 in which nearly $1.4 trillion was wiped off the crypto market due to bankruptcies.
Experts in cryptocurrencies say that Bitcoin is likely to grow even more after it crosses the psychological threshold of $30,000. This is especially true if the market’s expectations that the US Federal Reserve will loosen its monetary policy come true.
James Lavish, managing partner of the Bitcoin Opportunity Fund, told CNBC that traders think the upcoming consumer price index data “could come in at a level that gives the Fed reason to think about pausing rate hikes at the next meeting, giving assets like Bitcoin a boost.”
Some analysts think that after the recent turmoil in the stock market caused by the US banking crisis, Bitcoin will become more popular as a “safe haven” for investors.
In an email to CoinDesk, Bob Ras, co-founder of Sologenic, a blockchain-powered system for tokenizing assets, said, “While 2020-2021 was thought to be Bitcoin’s breakthrough moment, the present time really marks its ascent onto the global stage as a powerful asset.”
“In a time of increased geopolitical instability, failing banking systems, and growing worries about reserve currencies, Bitcoin has become the safe haven that many people had hoped for,” he said.