Bitcoin Price Climbs to $30,000 After $2 Trillion Slowdown

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The cryptocurrency market is booming as bitcoin breaks above the $30,000 mark for the first time in more than two months since the market slowed to $2 trillion.

The most popular cryptocurrency in the world soared to $30,056 on January 15.

Over the past five days, the price of bitcoin has increased by 17.5%, an increase of $4,431.

Bitcoin price is now up 23% from a year low of $24,354 on January 1 after suffering devastating losses in 2022, including following the implosion of popular crypto exchange FTX .

The market lost more than $1.4 trillion in value last year after FTX founder Sam Bankman-Fried (SBF) suddenly collapsed.

SBF was arrested for wire, securities fraud and money laundering.

The industry is worth $970 billion and over $72 billion was traded yesterday, according to CoinGecko.

Broker analyst at Oanda, Craig Erlam, said bitcoin had been “raised from its pits of despair.”

“Traders can hope for a return above US$20,000, a level once considered a worrying low but now potentially representing a sign of renewal.” he said to Barrons.

Why has the Bitcoin price increased?

Bitcoin price improved this week on economic optimism after the US jobs and consumer price index report showed inflation slowing as the Federal Reserve seeks to slow interest rate increases.

Chief strategy officer of crypto asset manager Wave Financial Les Borsai said the recent market surges were a sign “we are on the verge of bottoming out for this cycle.”

“We could go down further, I must caution, but the macro environment is showing signs of easing and giving way to a potential market reversal,” Borsai told Barrons.

Managing director of bitcoin rewards app Lolli Alex Adelman told Forbes that institutional investors, including those in banking and finance, will continue to enter the crypto market.

“Industry leaders who launched crypto services in 2022, like BlackRock, Fidelity and many others, have set a new crypto precedent for Wall Street, which will spur competition among traditional institutions for launch a growing suite of crypto products and services,” he said.

Another reason for global crypto optimism is El Salvador’s decision on January 12 to approve a digital asset law and a framework for their “volcanic bonds.”

According to the National Bitcoin Office, the bill will “provide unprecedented consumer protection against bad actors in the ‘crypto’ space while firmly establishing that we are open for business to anyone who wants to build the future with us.” on bitcoin”.

The legislation also identifies bitcoin as a digital security — providing investors with a contractual claim to the asset — and separates cryptocurrencies from other financial products, including central bank currencies.

“When we issue the first of the Volcano Bonds, we will once again be paving the way for this new monetary revolution,” according to The Bitcoin Office.

While bitcoin’s upward moves have many celebrations, the recent surge is lower than bitcoin’s previous high of just over $80,000 at the end of 2021.

The price fell to $70,199 at the end of December 2021 before gradually declining from January to March in 2022 to below $60,000.

Later that year, in June, the price fell below $28,000.

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