- Bitcoin price has surged to the highest level in months.
- This rally has triggered a rebound in the altcoin industry.
- Bitcoin is seen as a safe haven as the bond rout continues.
Cryptocurrency prices had a strong weekend as Bitcoin soared to over $30,000 for the first time in months. This was a strong performance for the coin, which bottomed at $24,800 in September. In all, the total market cap of all cryptocurrencies has surged to $1.2 trillion, making them quite resilient as interest rates surge.
Bitcoin as a safe haven
Bitcoin’s rally has also triggered a major run in other altcoins. As I wrote, Chainlink price has surged to the highest point since February last year. Other tokens like Solana, Fantom, Aptos, Pepe, and Quant have also jumped. FTM rose by 13% to $0.2238 while Aptos, Pepe, and Quant rose to $6.13, $0.00000075, and $95.70.
There are two main reasons why Bitcoin price has surged in the past few weeks. First, Bitcoin has emerged a place of safety amid the turmoil in the bond market that we have seen recently. Yields of the 30-year and 10-year Treasuries have plummeted to the highest point in decades.
The same performance is happening in other countries like the UK, Japan, and European countries. Therefore, there is an increasing risk that something will break now that the Federal Reserve has maintained its hawkish tone. Bitcoin’s performance has tracked that of gold, which has moved to $2,000.
Bitcoin ETF hopes
Bitcoin has also roared back as hopes that the Securities and Exchange Commission (SEC) will approve a spot ETF soon. If that happens, and because of Bitcoin’s resiliency over the years, we could see many institutions allocate a small portion of their portfolios to it.
In a statement on Friday, an analyst at JPMorgan said that the SEC would approve ETFs in the next few months. The top funds to watch will be by Blackrock, Fidelity, Invesco, and Franklin Templeton.
Finally, Bitcoin’s resiliency is happening ahead of next April’s halving event. Halving will make it more difficult to mine BTC and reduce the growth of supplies. Bitcoin tends to rally ahead of halving.
Quant (QNT) price, like Chainlink, is rising because of its role in the tokenization industry. The company has created tools that make it possible for companies to build tokenized products and even stablecoins.
The other tokens like Solana, Fantom, Aave, Pepe, and Maker are soaring because of their correlation with Bitcoin.
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