Bitcoin had its best quarterly performance since the first quarter of 2021, with its price surging around 70%, according to Dow Jones Market Data. The cryptocurrency is expected to outperform its performance in the first quarter of 2021.
The value of bitcoin has risen 22% this month, buoyed by the global banking crisis. Bitcoin is surging despite a regulatory crackdown on cryptocurrency firms and an increasingly risk-off market environment.
“Bitcoin has had an amazing year from a price standpoint,” said Craig Erlam, senior market analyst at Oanda. “But from a fundamental standpoint, you could argue that’s why there’s been so much confusion. Bitcoin is currently trading at more than $28,000 per coin, but is still down 59% from its November 2021 all-time high of $68,990.
Bitcoin remains a popular investment choice among investors, with more and more businesses and individuals accepting it as a method of payment for goods and services. The recent banking crisis has also contributed to bitcoin’s surge as investors view it as a safe-haven asset. However, regulatory pressure continues to hang over the crypto industry, with some countries cracking down on mining and trading activities.
Despite regulatory challenges, Bitcoin’s strong performance in the first quarter of 2023 is a positive sign for the industry.
Some experts believe bitcoin’s surge may be due to its growing acceptance as a mainstream investment asset as more institutional investors enter the market. Others attribute bitcoin’s success to economic uncertainty caused by the pandemic, as investors seek alternative investments as a hedge against inflation and market volatility.
Whatever the reasons behind the recent surge, Bitcoin’s continued success has made it a hot topic in the financial world.