Bitcoin has been experiencing a recent bout of volatility around the closely watched round-number level of $30,000. However, according to Bloomberg, the largest cryptocurrency has been pushing its way back towards that mark.
On Thursday, Bitcoin rose as much as 3.7% to trade at $29,469.45 before paring the advance to around $28,930 as of 9:30 a.m. in New York. Other cryptocurrencies, including Ether, Cardano, and Avalanche, also saw gains, reflecting a generally positive sentiment across the crypto market.
The recent swings in Bitcoin’s value have been attributed to liquidity pressures, a persistent issue for the crypto markets since the collapse of the crypto exchange FTX in November. Compared to the heights of Bitcoin at the end of 2021, the presence of market makers and institutional investors in the space has been significantly low.
Despite this, Bitcoin is on track for its fourth straight monthly gain and has rebounded 75% in 2023 from last year’s rout. In addition, expectations that the Federal Reserve will eventually pivot to lowering interest rates have helped to breathe life into digital-asset markets.
However, Bitcoin’s jump has sputtered around $30,000, with the token poking above that level only to slip back. It remains $40,000 down from its 2021 record.
Some market watchers have suggested that Bitcoin is viewed as a hedge for US banking angst and embodies an alternative to the fiat-based banking sector. Bitcoin’s 30-day rolling correlation with gold has also surged since March, at 57% as of Wednesday, its highest level in almost two years.
