The price of bitcoin surpassed $30,000 on Tuesday for the first time in ten months, continuing its climb in recent weeks.
“Turmoil in the banking sector and speculation about a possible end to the Fed [U.S. Federal Reserve] rate hike cycle have boosted demand for ‘cryptos,’ allowing bitcoin to recover from its 60% drop last year,” said Victoria Scholar, an analyst at Interactive Investor.
The bitcoin was gaining 6.2% to $30,069 on Tuesday around 10 a.m. GMT. It was up more than 6% in the past 24 hours, in turn boosting other cryptocurrencies such as Ether and Dogecoin.
Some bitcoin supporters claim that cryptocurrencies could be an alternative to the banking sector, recently under stress due to the failure of Silicon Valley Bank (SVB), and despite problems in the sector, such as the failure of the FTX platform or the fall of the Terra/Luna cryptocurrency.
“Keep in mind that the cryptocurrency market is unpredictable, so investors should remain cautious, as the situation could turn around quickly,” warned Walid Koudmani, analyst at XTB.
The bitcoin is still far from its all-time high of $69,992 in November 2021.