Bitcoin Price Excellent Growth 71.9% In Q1 2023: Report

Key Points:

• The bitcoin price spiked during the quarter by 71.9%, beating all other asset classes.
• The banking crisis is an advantage for BTC to shine.
• Bitcoin’s correlation with gold has increased over the past few weeks but remains a double negative correlation with the USD.

According to an NYDIG research report, Bitcoin recorded an excellent 71.9% gain and outperformed every other asset class in the first quarter of 2023.

This dramatic increase has coincided with efforts by the US authorities to rein in activities throughout space, resulting in enforcement proceedings against many industry actors and the potential for multiple actions more enforcement.

The big names in the industry are constantly getting into legal trouble with the SEC. Particularly notable lawsuits include:

• The ongoing Ripple lawsuit with the SEC.
• Wahi’s insider trading at Coinbase with the SEC.
• Grayscale against the SEC.

Besides the largest cryptocurrency exchange in the market today, Binance and its CEO, Changpeng Zhao (CZ) are also facing accusations of fraud and market manipulation.

The US banking crisis and its spreading is the first and foremost reason for BTC to shine when a series of the largest banks in the world threaten confidence in the banking system, such as Silvergate Bank, Silicon Valley Bank, or Signature Bank, collapsed.

Besides, the predictions that the Fed may reduce the rate of interest rate hikes next month and maybe pause the rate hikes in May is also one of the positive reasons that underpin the price of BTC skyrocketing.

Bitcoin’s correlations with “risk-on” assets, such as US equities, have been declining this quarter, allowing the asset’s and technology’s peculiarities to take over. Bitcoin’s correlations with gold have ticked up recently due to the banking crisis, while correlations with the US dollar remain negative but rose during the quarter. Over the long term, bitcoin’s average correlations with other asset classes remain extremely low, despite heightened correlations in response to Covid-19 stimulus impulses.

Today, BTC recorded its highest gain since October 2022, when it crossed $30,000 with a 6% gain.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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