As March’s banking turmoil faded away, Bitcoin ( TC), moved above $30,000 for its first time since June 10, 20,22. Investors became more confident about the U.S. central banks monetary policy.

The market capitalization of the largest cryptocurrency was $30,237. This is an increase of 6.75% in 24 hours.

“It’s clear that the market is pricing a slowdown in growth, and in turn a loosening of monetary policy by the Federal Reserve over the course of 2023,” said Richard Mico, the U.S. CEO and chief legal officer of Banxa, a payment-and-compliance infrastructure provider for crypto. Look at the bond market to see evidence of this.

The bond market has shown that the U.S. Treasury note, two-year, fell to below 4% after a peak of 5% in March. This was due to traders quickly reversing their expectations for future Federal Reserve interest rates hikes.

Mico said that there will likely be more liquidity being injected into markets as a result. “Bitcoin has already been the most successful asset in 2023. It is often the asset that reacts the fastest and most violently to these monetary shifts.”

Bitcoin peaked at $30,000 on June 10, and was quickly falling to $20,000 by the end of 2022. Bitcoin spent large amounts of 2022 and early 2023. The price has hovered around $28,000 over the past three weeks, as investors feared a banking meltdown and continued inflationary pressures. Bitcoin has risen by around 80% in the past year, having started the year at $16,600.

Inflation signs were waning led to a crypto boom in January. Bitcoin fell in February, but gained momentum in March after the collapse of Signature banks and Silicon Valley. This was when investors began to question the stability of the current financial system and sought out assets that could hold their value. Recently, gold also spiked and reached $2,000 for only the second time since 2020.

Mico pointed out that the bank crisis has fueled bitcoin’s momentum and there is a clear shift in the narrative. He added that bitcoin is being seen increasingly as a trusted store of value, which doesn’t have the risks associated with depositing your money through a third-party intermediary or bank. “BTC is being perceived now as a risk-off asset.”

Mico stated that “De-dollarization” is becoming a more common narrative. This is further driving BTC adoption. BTC is your bank, and you can use it to make money. Given the volatility of recent times, it’s hard to predict but I wouldn’t be surprised if momentum regarding BTC continues.”

Bob Ras, the co-founder and CEO of Sologenic, a cryptocurrency-powered network for tokenizing securities, wrote an email to CoinDesk. He noted that bitcoin has become more independent from stocks and “has shown increasing appeal as an investor safe haven.”

Ras stated that while the 2020-2021 period was considered to be Bitcoin’s breakthrough, the current time marks the cryptocurrency’s rise onto the global stage as an asset. “Bitcoin has emerged as the safe haven that many expected, despite increasing geopolitical instability, failing banking systems, and mounting concerns about reserve currencies. This pivotal juncture marks a significant advancement in the digital asset sector.

UPDATE, April 11, 2023 at 02:16 UTC: Comments from Bob Ras.

Stephen Alpher edited.