Bitcoin price returns to $47,000, hits 3-month high

The cryptocurrency market continues to recover.

On March 28, Beijing time, as the cryptocurrency market continued to heat up over the weekend, the price of Bitcoin surged on Sunday and broke through recent price resistance.

As of press time, Bitcoin rose more than 5% to $47,020 in 24 hours, while Ethereum rose 5% to $3,292, according to CoinMarketCap data. According to statistics, Bitcoin has risen 14% in the past week, and Ethereum has risen 15%.

As Bitcoin regained the $45,000 mark, its price also hit a nearly 3-month high. The last date Bitcoin quotes reached $47,000 was January 1, 2022.

Its market performance in 2022 will also improve as the price of Bitcoin rises. Wind data shows that among the current global asset classes, Bitcoin’s year-to-date performance is -1.91%, which is better than the S&P 500 and “FAAMNG”, the six U.S. stock technology leaders, and currently ranks 13th in the world, following the RMB , but the yield is still negative.

In contrast, in the performance of major global asset classes a month ago, Bitcoin ranked last with a retracement of 21.98%.

Entering 2022, the trend of Bitcoin continues to decline, from nearly $50,000 to around $30,000, showing a high correlation with the S&P 500 per share index.

But after the Russia-Ukraine conflict, Bitcoin gradually got out of the downturn and began to slowly regain lost ground.

OKLink data shows that the market value of Bitcoin has recently returned to $800 billion and is close to $900 billion, Ethereum is close to $400 billion, and the overall market value of cryptocurrencies is about $2.2 trillion.

The recent recovery in cryptocurrencies may be related to geopolitics.

In a video press conference on March 25, the chairman of the Russian State Duma Energy Committee said, "When it comes to our 'friendly' countries, we have been advising them to convert payment methods into national currencies, such as the ruble. and RMB."

Pavel Zavalny, chairman of Russia’s parliamentary energy committee, added: “In Turkey, it can be lira and ruble, it can be in multiple currencies, it’s a standard practice. If they want bitcoin, we will trade bitcoin.”

This means that the use of Bitcoin will not be excluded from the settlement of energy trade in Russia, but also the more traditional gold.

The energy chairman also doubled down on Russian President Vladimir Putin's pledge on Wednesday to require unfriendly countries to pay for gas in Russian rubles. Vladimir Putin's announcement sent gas prices soaring in Europe, amid fears the move could exacerbate an already stressed energy market.

Bitcoin was previously called "digital gold", but its constantly fluctuating price does not match the trend of spot gold, but if it can enter the field of international trade, it means that Bitcoin will have limited payment functions in certain areas.

Source: Interface News