It seems the worse is over for Bitcoin as the coin began to rise in the early weeks of 2023. Furthermore, a year-to-date high of $21,647 has given cryptocurrency traders hope that the worst of the bear market is over. “Bitcoin’s decentralised nature allows it to maintain stability in global trade even during economic frailty,” Edul Patel, founder and CEO, Mudrex, a cryptocurrency exchange told FE Blockchain.
It is to be further noted that as per a recent report by Glassnode, a blockchain data platform, BTC volume has more than doubled over the past week, reaching $10.8 billion, a 114% increase over the previous seven days. “In these times of global economic turmoil, digital currencies like Bitcoin could be potential drivers of financial stability, equity, innovation, and market incentives for environmental sustainability. In terms of currency mobility, digital currencies have emerged as a strong competitor to their fiat counterpart in today’s age with the advent of mass web3 adoption,” Swapnil Pawar, founder, Newrl, noted.
However, some market analysts note that due to the resilience of high inflation, equity markets may continue to tremble, but Bitcoin’s divergence from the stock market may help BTC turn into an investment hedge. “Cryptocurrency rails can facilitate seamless payments faster, cheaper, and securely. To have a persistent and sticky landing for crypto, being utility first is a must. Regulators will look more kindly at cryptocurrency like bitcoin if it’s utility first rather than being a speculative store of value. Global trade can be a lot more efficient in cross-border transactions for sure and is a great opportunity for cryptocurrencies to step in,” Nikhil Kurhe, founder, and CEO, Finarkein Analytics, noted.