Takeaways:
- Bitcoin has crossed the $30,000 mark for the first time in 10 months, marking an 80% year-to-date gain, with gains of nearly 46% recorded in the last 30 days.
- The demand for cryptocurrencies is increasing as investors are concerned about the safety of their deposits in traditional financial institutions, leading to the decoupling of Bitcoin from equities and the start of a new uptrend inversely correlated to the financial sector.
- NFT hype has settled down, but the market is picking up with increased interest, according to a report from NonFungible.
Bitcoin has crossed $30,000 for the first time in 10 months on Tuesday, as traders are increasingly betting on the Federal Reserve ending its monetary tightening policy ahead of the release of key inflation data on Wednesday.
This rally marks an 80% year-to-date gain, with gains of nearly 46% recorded in the last 30 days, according to CoinGecko,
leading many analysts like Knox Ridley, Investing Groups leader of Tech Insider Network to conclude that this appears to be more than just a bear market bounce.
One of the factors driving the rally is the increasing demand for cryptocurrencies due to investors’ concerns about the safety of their deposits in traditional financial institutions.
Many experts suggest that the recent separation of Bitcoin’s movement from traditional stock markets signifies the beginning of a new trend that seems to have an inverse relationship with the financial sector.
According to Jeff Garzik, co-founder of software development company Bloq and a former Bitcoin core developer, the hype surrounding non-fungible tokens (NFTs) has settled down. In an interview with CoinDesk TV’s “First Mover”, Garzik described the NFT market as “pleasantly down to Earth” and noted that users are now looking for NFTs that can provide real utility and engagement.
Although the NFT market is not yet at the volumes of last year, a report from DappRadar showed a 137% increase in trading volume during the first quarter of this year, with a total value of $4.7 billion.
The increase was led by emerging online marketplaces such as Blur, which drove market competition and may force other competitors to improve.
