Bitcoin continues to be the standout success story in the market this year. On Tuesday, the cryptocurrency surpassed $30,000 for the first time since June.
Bitcoin's price has increased by more than 80 percent this year, significantly outperforming many other assets. While the Nasdaq 100, a major index of technology stocks, has seen a gain of approximately 20 percent during the same period, it pales in comparison to Bitcoin's impressive resurgence.
The recent surge in Bitcoin's value seems to be partially influenced by the monetary policy of the Federal Reserve, which has implemented nine interest rate hikes in the past year. Last year, cryptocurrency prices suffered as the central bank began raising rates. However, investors are now speculating that the Fed will soon pause its rate increases, contrary to suggestions by Fed officials. This expectation has sparked a significant rebound in Bitcoin.
The notable gains of Bitcoin also align with the turbulence witnessed in the banking sector. Since the collapse of Silicon Valley Bank last month, the cryptocurrency has surged by more than 45 percent. Advocates of the industry view this recent rally as an indication that investors are converting some of their cash into digital currencies, although there is limited evidence supporting this claim.
Michael J. Saylor, the executive chairman of MicroStrategy, a software company that has been actively acquiring Bitcoin in recent years, expressed his enthusiasm for reaching the $30,000 milestone, tweeting, "#Bitcoin is Champion."
As of last month, MicroStrategy held around 140,000 Bitcoins, which are valued at approximately $4.2 billion based on current prices, surpassing the company's market capitalization of $3.6 billion.