Indices are falling but Bitcoin is heading for its best week in a year

by time news

Bitcoin is now trading around a price of 26,500 dollars, while today it still managed to touch the 27,000 dollar point. According to the current price, this is a weekly increase of about 20% and this is the sharpest weekly increase since March of last year, when the price of Bitcoin increased by 13.5%. The market value of the currency is about 510 billion dollars and while Bitcoin continues to rise, the indexes are falling due to concerns about the situation in the banking sector – the S&P 500 is down more than 3.5% for the week and the Dow is close to losing 5%.

The reason for the rise in the currency is apparently the exact reason that lowers the stock indices – Bitcoin allows those who hold it to do so with their own hands, without the need for an intermediary (a bank) and when we talk about “runs to the bank”, the possibility of holding the money ourselves becomes more tempting.

Beyond the increase in the last week, Bitcoin has been on an upward trend since the beginning of the year when it recorded a 60% increase since the first of January. After the collapses of Terra Luna, Celsius and FTX investors realized that they probably won’t see another event as severe as those events and optimism is seeping in – it’s hard to see how an interest rate increase or negative inflation data will affect digital currencies in the same way as they affect stocks (and we have the The banking crisis as a very good example).

Along with Bitcoin, the other leading currencies are also rising, but it is clear that Bitcoin is the leader and that investors are flocking to it, much more than any other currency – Ethereum is up about 8% this week, so is Polkadot, Cardano is up only 1.5% weekly and Solna is down 1.5% overall %. The trend of the influx can be seen in the dominance of Bitcoin as part of the total crypto market – at the end of 2022, Bitcoin accounted for about 38% of the total value of the crypto market, now the figure stands at more than 45%.

In the last year, Bitcoin has already been eulogized several times, but it seems every time that the currency is here to stay. One of the reasons for the great attraction to the currency is apparently that no person, company or bank stands behind Bitcoin. Bitcoin functions without a central body that controls it and even when one or another crypto currency or project crashes, it continues to function, even thrive.

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