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What the numbers say: Earlier this week, the price of a single Bitcoin topped $30,000 for the first time since June 2022. Relevance: Bitcoin and other high-risk assets have become more attractive to investors as equities and bonds have struggled to rebound from the lows seen in the last year. Bitcoin is up more than 80% YTD, while the S&P 500 has gained 8.44% since the beginning of 2023. What to look for going forward: It remains to be seen whether Ethereum, which is up ~66% this year, will rebound in the same way that Bitcoin has. Some crypto industry analysts believe that Bitcoin's price will continue to climb ahead of the Bitcoin halving that is scheduled for next year. Others argue that stormy macroeconomic conditions will give Bitcoin an additional push, as investors turn their backs on the equity and bond markets in search of higher returns. However, efforts to increase regulatory oversight of digital assets could lead to volatility in the crypto market. |
