• Bitcoin has seen a sharp rise in the last three months, reaching $28,000.
• Analysts attribute this spike to banking failures in America and central bank hikes.
• Bitcoin is still fueled by the belief that it will become the ultimate payment method.
What’s Behind Bitcoin’s Spike?
Bitcoin has had a very successful 2023 thus far, spiking by as much as $12,000 in the last three months. This was an impressive rebound from its losses of 2022, when it lost more than $2 trillion in valuation and dropped 70 percent of its value. Analysts have attributed this sudden rise to banking failures in America and central bank hikes.
Macro Narrative Behind Bitcoin’s Rise
Noelle Acheson, an economist tracking crypto markets for seven years believes that the macro-narrative – or banking failure of America – is largely behind the current gains seen with bitcoin. She also believes that credit costs nearing their peak have caused people to turn towards alternative methods of investing such as bitcoin.
Confidence is Key for Bitcoin Success
Usman Ahmad – CEO of Zodia Markets – noted that confidence is almost a critical factor for bitcoin’s success since confidence in traditional banking systems has been damaged due to financial failures.
Bitcoin Assumed to be Ultimate Payment Method
The belief still remains strong amongst investors that bitcoin will one day replace credit cards, checks and fiat currencies as the ultimate payment method worldwide.
The recent surge in bitcoin prices shows no sign of stopping anytime soon and analysts are attributing this surge to both macro-narratives such as government financial fails, but also increasing levels of confidence amongst investors who believe bitcoin will become a dominant payment system worldwide.