Not everyone suffered from the recent banking crisis. Fortunately for crypto enthusiasts, Bitcoin, the largest cryptocurrency by market cap, has emerged victorious. take off About 70% years from date.

Institutional traders believe that the brutal year-long crypto winter is finally over, a trend reversal reflected in the current macroeconomic backdrop.

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2023 Crypto Rally

Bitcoin is a hit All time high $68,991 in November 2021 before the brutal crypto winter begins. But recent market conditions have investors singing a different tune, calling bitcoin a safe haven and store of value. While many have heralded Bitcoin as a hedge against inflation, the Federal Reserve’s Aggressively hawkish location Decentralized tokens fell out of favor last year.

In the wake of the recent banking crisis, analysts predicted the Fed would slow its rate hikes. Bitcoin has also long been considered a store of value. Other popular cryptocurrencies including Ethereum (ETH/USD) and meme tokens Dogecoin (DOGE/USD) also performed well. Goldman Sachs recently stated that cryptocurrencies hold a 20% market share as stores of value.

Other blockchain-based assets are also doing strong. Gameflip is a gaming and NFT marketplace with over $160 million in lifetime volume on its platform. The startup also has a live StartEngine raise, meaning anyone can invest for a limited time. The startup is close to $1 million raised in the current round from retail investors.

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BTC: The New Digital Gold

Last month’s banking crisis exposed a behemoth of systemic weakness in the global banking system, including the second-largest Swiss bank. Swiss Credit And then the 16th largest US bank Silicon Valley Bank, closed their doors. The benefits of decentralized tokens have been highlighted in the wake of recent bank failures, with many heralding Bitcoin as the new digital gold.

Bittrex Global CEO Oliver Lynch said, “I think this rally can be interpreted as saying that the banking system is broken.

Changpeng ZhaoCo-founder and CEO BinanceBitcoin is considered better than gold.

As the crypto rally begins, analysts and institutional investors are betting on Bitcoin to hit all-time highs again this year.

“I think bitcoin will probably break all-time highs this year,” said Marshall Beard, chief strategy officer at cryptocurrency exchange Gemini, adding that the cryptocurrency could hit the $100,000 mark.

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Vijay IyerHead of International at crypto exchange Luno, said, “Broadly speaking, we’re looking pretty bullish here with Bitcoin retrieving $28K and targeting $30K next.”

On March 17, Balaji Srinivasan, former chief technology officer of crypto exchange Coinbase, bet $2 million that Bitcoin could cross $1 million in just 90 days, as hyperinflation sets in. Notably, Bitcoin should rise by around 3,500% in the next three months. To reach this mark.

The blockchain-based gaming market is expected to benefit from the crypto rally to be valued at $50 billion by 2025. This represents a 33-fold increase from a reported $1.5 billion market size in 2021.

Fed Scaling Back and the Future of Crypto

The Fed’s dovish stance is expected to fuel the bullish case for crypto, as decentralized currencies regain momentum. Bitcoin typically outperforms other major asset classes in a bull market.

“Anytime you hold bitcoin over a rolling four-year period, so you pick the day, hold it for four years, you’ve outperformed every other asset class,” said Anthony Scaramucci, founder and managing partner of SkyBridge Capital.

But a disappointing jobs report and weak economic data released earlier this week drove investors to reliable asset classes, including gold. As fears of a recession loom, crypto may see a huge influx of investment, as people place bets on decentralized assets.

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Excitement ahead

The US Treasury has deemed the decentralized finance (DeFi) market a threat to US national security, citing the need for more regulatory oversight. This, combined with the US Commodity Futures Trading Commission’s lawsuit against Binance, indicates significant regulatory headwinds ahead for the crypto industry. But with the easing of the Fed’s monetary stance and the weakening of the US dollar amid macroeconomic turmoil, Bitcoin may retain its position as the best-performing asset in 2023.

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This article is about Crypto Bull Rally: Will Bitcoin Surpass $100,000 in 2023? Originally appeared on Benzinga.com

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