The value of one bitcoin has risen above $30,000 for the first time since June 2022.
The latest spike follows a series of crypto-related scandals and bankruptcies that had a negative impact on the digital asset's price.
- Bitcoin,
the world's largest digital asset, has surged 80% since the start of
the year but remains 50% below its all-time highs in 2021.
- Analysts have partially attributed Bitcoin's latest jump to low liquidity, which may be distorting the asset's price.
- Bitcoin's rally came after the collapse of three U.S. banks.
- The
asset's success following the bank failures may have bolstered the
narrative professed by some Bitcoin advocates that the digital asset
provides more security than traditional finance.
- The crypto industry also remains in a period of uncertainty, as it faces a regulatory crackdown following several high-profile bankruptcies.
- The crypto market peaked in Nov. 2021 before a crash wiped off $2T of its value, triggering the collapse of several firms including Three Arrows Capital and FTX.
- The bankruptcies were followed by the collapse of Silvergate, one of the two largest lenders to the crypto industry, along with New York-based Signature Bank.
