The worlds largest digital currency Bitcoin BTC/USD brokethe $25,000 mark last week, reaching a new high for 2023, a stark contrast to November when the cryptocurrency saw a significant drop to a 2022 low of $15,742 following the FTX FTT/USD crisis.
The apex crypto's value began to increase again in January and continued to do so over the course of the month.
The last time BTC's value was around $25,000 was in mid-June of last year, after which itdroppedto a range of $19,000 to $21,000 where it remained stagnant for several months.
Image: CoinGecko
Industry veterans believe that the proliferation of businesses and merchants embracing BTC as a viable payment option is a crucial factor in the surging valuation of thecryptocurrency.
According to the experts, the surge in BTC's price has made it an attractive option for those who are skeptical of traditional financial institutions.
Azra Kojadinovic, President of, the Serbia Chapter says the recent surge in BTC prices has sparked renewed interest in cryptocurrencies, and it is likely that this trend will continue in the future.
BTC's long-term outlook remains positive, and ETH'sincreasing popularity as a platform for creating dApps is driving its growth. As the adoption of cryptocurrencies continues to increase, the future of the cryptocurrency market looks bright, Kojadinovic said.
According to Whitney Setiawan, research analyst at crypto exchange Bitrue, along with BTC's rise, Ethereum ETH/USD has also breached $1,700 for the first time in more than 3 months.
While enthusiasm is high, we may see long-term holders taking their gains, leading to a somewhat visible negative correction in short to mid-term. However, this recent upsurge has shown that the industry is becoming somewhat immune to negative regulatory pressures, and investors are taking positions that could change their bottom line in the future, Setiawan said.
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Jenny Zheng, BD Lead, Bybit Web3 says with the proliferation of businesses and merchants embracing BTC as a viable payment option, the demand for the cryptocurrency has experienced a marked increase, thereby propelling its value upwards.
This groundswell of adoption is further reinforced by the rising prevalence of BTC wallets, indicating a mounting number of individuals purchasing and retaining BTC as a secure store of value or investment vehicle. The recent trend of generating BTC non-fungible tokens (NFTs) is expected to exert additional pressure on adopting BTC, according to Zheng.
The surge in BTC price is not solely attributed to its intrinsic value but is also heavily influenced by the current global economic climate.
The unprecedented nature of the pandemic has caused economic turmoil, resulting in market volatility and leaving investors with a sense of insecurity.
Anndy Lian, an intergovernmental blockchain expert, says investors, in response, are increasingly turning to alternative investments that offer a hedge against inflation and economic instability.
BTC is viewed by many as a safe haven asset, and its decentralized nature makes it an attractive option for those skeptical of traditional financial institutions, he says.
At the time of publication on Sunday, Bitcoin was trading at $24,571, down 2% in 24 hours, but up over 11% in the past seven days.
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