Bitcoin (BTC) continues its meteoric rise, hitting a new year high of $28,503 on Monday morning, up 4% in the day and 28.4% over the last week, making it one of the best performers in the market. The latest rally means that Bitcoin has surged about 70% since the start of the year, contrasting with major bank stocks that have continued to plummet following the collapse of Silicon Valley Bank and Signature Bank earlier this month.
Cathie Wood of Ark Invest commented on the recent banking collapse, saying that “this debacle would not have been possible in the decentralized, transparent, auditable, and over-collateralized crypto asset ecosystem.”
Matrixport’s head of research Markus Thielen has also noted that both Bitcoin and Ethereum are trading above the 50-day moving average, which is “bullish,” and the firm is reassessing its price targets for Bitcoin. “The new Bitcoin price target is 36,000 by summer 2023,” Thielen wrote in the latest note.
As the banking sector remains in chaos, Bitcoin enthusiasts are once again promoting the leading cryptocurrency as a “safe haven.” “During the last week, crypto assets behaved like safe havens: along with gold, their prices appreciated,” said Cathie Wood.
Bitcoin’s impressive performance is a stark contrast to the plunging stocks of major banks, prompting some investors to consider Bitcoin as a hedge against such mishaps. In times of economic turmoil, Bitcoin has suddenly proven to be a safe asset—and a proof of people’s desire to have a decentralized banking system— drawing in more investors who seek financial security.
