After hitting as low as $16K in November, Bitcoin seems to be approaching its historic levels again. The world’s most valuable cryptocurrency continued its steady rise this week as well, surpassing the $30,000 mark.
Bitcoin reached $30,382.10 early on Tuesday, and everything points out that the surge isn’t over. This is the first time since June 2022 that Bitcoin was worth more than $30K. Its price increased more than 80 percent year-to-date.
Other cryptocurrencies benefited from Bitcoin’s surge as well. For example, Ethereum jumped more than 2 percent and is heading toward the $2K mark for the first time since May, while Ripple, Cardano, and Dogecoin are also trending.
According to analysts, the reason why investors are jumping on the cryptocurrency train again has a lot to do with expectations that the Federal Reserve is ready to walk back on its aggressive interest rate hikes. With the recent banking crisis that resulted in the collapse of several banks, many believe that the Fed will not want to put added pressure on the banking sector.
“The reason behind the broad-based rally in crypto is traders’ optimism toward central banks’ monetary policy,” Tina Teng, markets analyst at CMC Markets, told Reuters.