As Bitcoin hits $25,000 high, experts say investors are turning to crypto as a safe haven

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The world’s largest digital currency, Bitcoin BTC/USD, broke through the $25,000 mark last week, hitting a new high for 2023, a stark contrast to November when the cryptocurrency saw a significant decline to reach a 2022 low at $15,742 following the FTX FTT/USD crisis.

The value of the apex crypto started to rise again in January and continued to do so during the month.

The last time the value of BTC was around $25,000 was mid-June last year, after which it fell to a range of $19,000 to $21,000 where it has remained. stagnant for several months.

Image: CoinGecko

Industry veterans believe that the proliferation of businesses and merchants adopting BTC as a viable payment option is a crucial factor in the growing cryptocurrency valuation.

According to experts, the surge in BTC prices has made it an attractive option for those who are skeptical of traditional financial institutions.

Azra Kojadinovic, President of the Serbia Chapter, said that the recent BTC price surge has sparked renewed interest in cryptocurrencies, and it is likely that this trend will continue in the future.

“BTC’s long-term outlook remains positive, and the growing popularity of ETH as a platform for building dApps is driving its growth. As cryptocurrency adoption continues to increase, the future of the cryptocurrency market looks bright,” Kojadinovic said.

According to Whitney Setiawan, research analyst at crypto exchange Bitrue, alongside the rise of BTC, Ethereum ETH/USD also surged above $1,700 for the first time in over 3 months.

“Although enthusiasm is high, we could see long-term holders taking their gains, leading to a somewhat visible negative correction in the short to medium term. However, this recent upsurge has shown that the industry is becoming somewhat lagging. protected from negative regulatory pressures, and investors are taking positions that could change their bottom line in the future,” Setiawan said.

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Jenny Zheng, BD Lead, Bybit Web3, said that with the proliferation of businesses and merchants adopting BTC as a viable payment option, the demand for the cryptocurrency has seen a marked increase, thus propelling its value upwards.

“This wave of adoption is further bolstered by the growing prevalence of BTC wallets, indicating an increasing number of individuals buying and holding BTC as a secure store of value or investment vehicle. The recent trend of generating BTC non-fungible tokens (NFTs) is expected to put additional pressure on BTC adoption,” according to Zheng.

The surge in the price of BTC is not only attributed to its intrinsic value, but is also heavily influenced by the current global economic climate.

The unprecedented nature of the pandemic has caused economic turmoil, driving market volatility and leaving investors feeling insecure.

Intergovernmental blockchain expert Anndy Lian says investors are increasingly turning to alternative investments that offer protection against inflation and economic instability.

“BTC is viewed by many as a safe-haven asset, and its decentralized nature makes it an attractive option for those who are skeptical of traditional financial institutions,” he says.

At press time on Sunday, Bitcoin was trading at $24,571, down 2% in 24 hours, but up more than 11% in the past seven days.

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