In an attempt to avoid the crypto winter of 2022, Bitcoin’s momentum has finally shown some results. The flagship digital currency outperformed every other asset class by more than 70% in Q1 2023. In addition, BTC Surpasses the $30k Mark for the first time since June 2022.
Furthermore, recent reports also revealed that nearly 1,000 new coins have entered the crypto market in 2023 alone. This indicates a fresh interest and optimism toward the crypto market.
BTC Surpasses the $30k Mark: How It Performed in the Q1 2023
As per the Bloomberg report, Bitcoin emerged as the top-performing asset class in the first quarter of 2023, with gains of roughly 73%. This makes it the digital currency’s best quarter since Q1 2021 when it gained 103%.
The coin outperformed every other asset class, such as equities, commodities, and so on. In Q1, the S&P 500 gained 5.5%, the Nasdaq 100 gained 19%, and the iShares Core U.S. Aggregate Bond ETF gained 2.2%.
The reports further added that Bitcoin also beat gold, with the precious metal gaining 9.5% in the first three months of 2023, while silver gained 0.3%.
According to Coinmarketcap, the total market cap of all cryptos increased 49% in the first quarter to $1.19 trillion. Bitcoin increased 73% to $28,440 between the end of 2022 and the last day of Q1. Meanwhile, Ether, the second-largest token, increased 53% to $1,827 in Q1.
Furthermore, reports also reveal that 1,000 new coins have been claimed to have entered the crypto market in 2023 alone, indicating increasing interest and optimism
What is triggering this performance?
The last quarter of 2022 was difficult for Bitcoin. The terrible macroeconomic environment, the Terra (LUNA) crisis, and the FTX collapse all had an impact on Bitcoin’s performance. However, BTC stayed resilient in 2023 despite the failure of two large crypto-friendly banks, Silvergate and Signature Bank.
A number of things contributed to the performance, but this is the most important. The cryptocurrency sector profited from the banking sector’s instability, as investors saw the asset as an alternative to centralized monetary systems.
This was illustrated in a March 21 Finbold report, which stated that five major US banks lost a total market value of $108.92 billion in 2023 alone, while Bitcoin added nearly $219.86 billion.
Furthermore, the number of holders holding at least one BTC has gradually climbed, reaching 992,243 at the time of writing. This could imply that, despite price fluctuation, the coin has gained traction and has been accepted by supporters such as businesses and governments.
BTC Surpasses $30K Mark for the First Times Since June 2022
Recently, Bitcoin has hit price highs not seen since mid-2022, with the largest cryptocurrency by market cap hitting the $30,000 mark and setting a new 2023 high. This development is promising for the industry as a whole. Apart from that, April has traditionally been a bullish month for risk assets, and this year is projected to be no different.
Furthermore, recent Federal Reserve data shows that inflation is falling, raising hopes that policymakers may be able to ease up on their aggressive monetary tightening. This might add to Bitcoin’s upward momentum, giving investors even more reasons to be bullish.
April is shaping to be an excellent month for Bitcoin, and if the total number of Bitcoin holders continues to rise in Q2 2023. It could easily translate into additional profits in the near future.
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