Cryptocurrencies are making a comeback in 2023, with Bitcoin rallying by 80% above last year’s value, despite still being nearly 50% down from its report high of US$69,000 in November 2021. This resurgence is partly as a outcome of bettering macroeconomic circumstances and the deteriorating state of the US banking system, which has led investors to seek options to conventional monetary devices.
Jirayut Srupsrisopa, founder and CEO of Bitkub Capital Group Holding Co Ltd, Thailand’s main cryptocurrency platform, commented on the challenges faced by the cryptocurrency market in current times, including the collapse of main exchanges like Luna, FTX, and Three Arrows. Discount mentioned the continuing issues within the US banking system, with 327 smaller banks nonetheless at risk as a end result of liquidity mismatches.
“In Thailand, the buying and selling volume averages 1 billion baht per day now, however during the peak, Bitkub used to submit 4 billion baht,” said Srupsrisopa.
As the cryptocurrency market recovers, some analysts predict that Bitcoin may attain $35,000 later this month. Bitkub anticipates a surge in quantity, activity, and price movement as soon as the market enters a “golden year” in 2024, changing into more bullish primarily based on statistics that indicate the primary worth peak occurred after Bitcoin’s halving started in 2013, followed by subsequent waves in 2017 and 2021.
“On a micro degree, a Bitcoin halving is anticipated in April 2024. The years when a Bitcoin halving occurs are dubbed a golden yr,” said Srupsrisopa. “Next year might be interesting because the target inflation vary should return to 2% within the US, which means the Fed is prone to cease raising interest rates.”
Cryptocurrencies corresponding to Bitcoin and Ethereum have turn out to be a new asset class for the world, with Srupsrisopa suggesting that gold and Bitcoin are seen as a secure haven for lots of rich people who are losing trust within the US fiat system and on the lookout for asset diversification.
“We are in a most exciting period. If you examine the history of the financial revolution, the financial system modifications every 50 years,” Srupsrisopa mentioned. “I believe there shall be an upgrade from fiat to digital foreign money, which shall be adopted because the accepted financial option.”