Bitcoin soars to $30,000 for first time since June

BLOOMBERG 

Bitcoin climbed above $30,000 for the first time since June 2022, bolstered by bets on easier monetary policies that have made cryptocurrencies standout performers this year.
Bitcoin is now up 82% since December 31, 2022, handily beating the Nasdaq 100 tech index’s 19% gain. Gold, another investor favourite this year, has climbed 9.6%. Crypto’s rapid ascent has seen Bitcoin vault past where it stood when hedge fund Three Arrows Capital imploded last summer — yet it remains more than 50% below its all-time high in November 2021.
Underpinning Bitcoin’s partial comeback are expectations that the banking crisis that erupted in the US in March will force the Federal Reserve to hit pause on rate increases. That’s boosted the view among Bitcoin bulls that the token stands to gain from lower real interest rates, and that it offers shelter from turmoil in traditional finance.
“This rally may, in part, be driven by the expectation that rate hikes are almost done, but some groups of investors are drawn to crypto because it’s an asset outside of traditional banking and finance,” said Bradley Duke, co-chief executive officer of crypto exchange-traded product provider ETC Group.
Digital assets broke out of weeks of range-bound trading over the past two sessions, with analysts also citing technical factors as having given the token a nudge. But hanging over the rally is persistently low liquidity, which bears say distorts pricing and could cause a rapid reversal should central banks stand firm on battling inflation.
“30k is very significant for both technical and fundamental reasons,” said Mati Greenspan, Quantum Economics chief executive officer.
Bitcoin’s breakout above stiff resistance at $30,000 comes after a so-called squeeze of the Bollinger Band, which saw historical volatility fall to lowest since January. The compression back then resulted in a sharp move upward that looks similar to upside breakout. Traders following technical patterns may now be looking at the $30,800 area as a first potential objective, followed by $31,200.