12.04.2023 – The price of Bitcoin is picking up. The e-currency has just marked a new ten-month high – and conquered the $30,000 mark. The reasons: On the one hand, the flight from inflation. On the other hand, BTC is suddenly considered a safe haven in the banking crisis.No scandals, no insolvencies – and the bulls are already buying again. This year, BTC has already achieved a whopping return of around 80 percent. The last time the cyber currency was quoted at this level was in June 2022. Here is the daily chart.
This is an interesting development, which indicates that the distrust of banks persists: Before an institution keels over, many investors apparently prefer to bring their dollars and euros to safety and buy BTC, which they store on a server.
Suddenly BTC stands for safety
Which brings us to a remarkable change in attitude towards e-currencies: they were once considered unpredictable and risky. But suddenly BTC and co. are apparently the safe haven. “BTC is now properly starting to be perceived as a risk-off asset,” said Richard Mico, head of Banxa, a payment and infrastructure service provider in the crypto world. He added: “BTC is also being seen as a reliable store of value that lacks the issues that come with storing your money by way of a third-party intermediary, or a bank.”
Big investor MicroStrategy
Another push factor was the announcement by the company MicroStrategy just over a week ago: according to this, the software group has now amassed around 140,000 BTC coins. At an average purchase price of 29,803 dollars per unit, the company is currently making a profit. So the company did not pull out of the downward slide from the all-time high. Which I’m sure many traders took positively.
Protection against inflation
In addition, the regulatory authority for the financial sector in Argentina has just sent out a positive signal: The Comisión Nacional de Valores de Argentina has approved a series of index futures for the Matba Rofex exchange that are based on Bitcoin. The vote of confidence is the first of its kind in Latin America and could improve acceptance for the e-device. Especially as Argentina is plagued by hyper-inflation and many investors want to preserve their purchasing power outside the peso. In February, inflation stood at a whopping 102.5 per cent year-on-year.
Which brings us elegantly to the topic of inflation: Today’s Consumer Price Index in the US will set the direction for the financial market in the short term. And this also applies to Bitcoin. Consumer prices should provide information on how the Federal Reserve will continue to fight inflation. By the time you read these lines, you will certainly know more. With this in mind: Bernstein Bank wishes you successful trades and investments!
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