Bitcoin price hit a 6-month high above $24,000.
Bitcoin has hit its highest level since August 17, 2022. According to Coingecko data, at the time of writing the top cryptocurrency by market capitalization is trading at just over $24,500, up 11% from the last 24 hours.
According to Noelle Acheson, a former Genesis analyst, Bitcoin is down 65% by 2022 and this makes it an “interesting liquidity game.”
“BTC had a huge drop last year, BTC is one of the most liquidity sensitive games right now, cash flow in the market is decreasing due to increasing withdrawals from investors in recent times.” Acheson said.
“People with a long-term investment mentality see BTC as a store of value,” Acheson added.
According to TheBlock, lower volatility in stocks and bonds, lower oil prices and a weaker US dollar have benefited bitcoin.
Cryptocurrencies also benefit from the absence of discounted cash flows, making it less susceptible to higher rates than stocks and less sensitive to upcoming adverse economic news.
Not only bitcoin, many other altcoins on the market are also recording pretty good gains.
ETH, BNB or ADA are all up over 7% over the past 24 hours. Even many ‘heavy’ altcoins like XRP have recorded a 5% gain in the past 24 hours.
“The story of BTC has many facets. For some it is a store of value, for others BTC is an early stage liquid technology investment, and for many it is pure speculation…but It’s clear that whatever it is, BTC is always very attractive to investors in general,” Acheson said.
See also: Bitcoin transaction fees reach highest level since November 2022
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