Recently, the World’s largest cryptocurrency by market capitalization is boasting an incredibly lucrative period.
Over the past 7 days, bitcoin surged by over 15%, going from $23,739 to trading at around $28,807 at this time of writing.
The asset is continuing its forward momentum — which was initiated on March 10 when the cryptocurrency market presented itself as a scapegoat during a major banking crisis.
Furthermore, this recent surge further consolidates that bitcoin is going through a clear buying trend in 2023. The market-leading crypto is up by 76% since the turn of the year, which indicates that the market is one step closer to putting the dreaded “crypto winter” behind.
In addition, this recent rally gave bitcoin enthusiasts a couple of great reasons for celebration. After spending the majority of February in a tough battle to remain above the $23,000 resistance zone, BTC is now comfortably above, being closer to reaching the $30,000 mark for the first time since May of 2022.
Bitcoin Against Inflation
After suffering through the majority of 2022 with the SEC’s recurring interest rates, the recent Silicon Valley Bank crash could have indicated to the market that crypto could play a bigger role against inflation.
Crypto, bonds, and gold are expected to become more sought-after assets as concerns about inflation and a potential recession begin to limit the liquidity of the financial system dealing with fiat currencies.
With governments around the world printing more money to stimulate their economies and mitigate the impact of the pandemic, there is a growing fear that the value of traditional currencies will decline.
In this context, investors are turning to alternative assets like Bitcoin, which is decentralized and not subject to the same inflationary pressures as fiat currencies. As a result, many experts believe that Bitcoin could serve as a hedge against inflation and a safe haven for investors seeking to protect their wealth.