© Ozan Kose / Agence France-Presse / Getty ImagesBitcoin climbed 4.4% to a 10-month high on Monday, with some industry promoters touting the asset as a potential 'safe haven' like gold as fears of a recession surfaced last month following fears of potential volatility. banking system
It traded at $29,314 on Monday, its highest level since June 2020, according to data from KoinDesk. Bitcoin is still down more than 57% from its November 2021 peak.
“With the banking crisis, I think the fundamental nature of bitcoin has changed from a speculative technology to a security technology. It is very similar to gold,” said David Tawil, president and co-founder of ProChain Capital. Al-Taweel said some investors may see the asset as a safe haven against a banking crisis and recession rather than a speculative asset.
However, in recent years Bitcoin has often been traded against other risky assets such as stocks.
According to Stefan Rust, founder of Truflation, "I also think there will be an influx of cash from Asia, particularly from Asian tech companies with accounts at Silicon Valley Bank looking for places to put their money."
Rachael Lin, co-founder and CEO of Synfutures, believes Monday's rally could be due in part to "growing influence in the Hong Kong-led cryptocurrency market" as US regulators step up their oversight of the sector.
Hong Kong Finance Minister Paul Chan said in a blog post on Sunday that while cryptocurrency markets are highly volatile, the time is "right" to support the adoption of Web3, or third-generation internet, in the region. . to encourage
Rast noted that Bitcoin has been trying to break above the psychological $30,000 level for three weeks.
Stocks were mostly down on Monday, with the Dow Jones Industrial Average up 0.2% and the S&P 500 flat. The Nasdaq Composite fell 0.1% on Monday.