Bitcoin rises above $30,000 after 10 months, Over 70% increase in the year

Bitcoin, which met its Waterloo last year, has made a big comeback this year. on April 11, the price of bitcoin broke through $30,000 at around 8:30 p.m., up more than 5 percent, but then began to fall back, with bitcoin quoted at $30,400 as of press time.

According to interface news reports, into April, cryptocurrency bitcoin maintained the strong trend since the beginning of the year, at the end of March bitcoin had briefly exceeded the $29,000 mark, and then kept in the $28,000 mark oscillation. wind data shows that 2023 so far in the global performance of major asset classes, bitcoin has reached 71.47% in the year, ranking the first in the world, and 2022 ranking the bottom of the global ranking is a stark contrast.

Also according to Caixin 11, the current bitcoin price is $30,400, up 96% from last year's low, according to CoinGecko data.

Since the Federal Reserve accelerated the pace of interest rate hikes in 2022, bitcoin-led cryptocurrencies have fallen into a slump, dropping from an all-time high of $69,000 to a low of $15,000, and the current price of bitcoin has nearly doubled from its trough, but the difference is significant compared to its all-time high.

Bitcoin, which was "abandoned" by money last year, is rising again this year.

According to a report in the Nihon Keizai Shimbun on April 7, Bitcoin is attracting a lot of money in the crypto asset (virtual currency) market.

The report points out that Bitcoin is attracting a lot of money because it has the feature of not needing to be backed by a preserved asset, and is thus once again being sought after by investors. To get new bitcoins, you have to "mine" them yourself. It is not possible to distribute new coins based on holdings, as is the case with stock or bond dividends.

At the same time, the bankruptcy of small and medium-sized banks such as Silicon Valley Bank has pushed up the price of bitcoin. Bitcoin's value is built on trust in the blockchain's issuance and management mechanisms, according to the report. Compared to virtual currencies such as stablecoins, which require the involvement of financial institutions at issuance, the value of bitcoin assets is less likely to be compromised.

While cryptocurrency enthusiasts have called for a firm hold on Bitcoin, some economists have been scornful of it. One economist recently suggested that abandoning bitcoin could be good for world prosperity.

In a report released last week, Dieter Wermuth, an economist and partner at Wermuth Asset Management, said the world economy would perform better without cryptocurrencies because they are "negative" investments that come at a social cost, taking money away from overall economic growth. funds.

Since it was first introduced in 2009, bitcoin has gone from a nearly worthless asset to nearly $68,000 in 2021. But Wermuth argues that not all investors are enjoying the gains; instead, resulting in an uneven distribution of wealth that favors crypto industry insiders.

For example, according to a media report in 2021, 0.01% of bitcoin investors held 27% of the bitcoin in circulation at the time, which was worth about $232 billion at the time.