According to Bloomberg Intelligence Principal Analyst Mike McGlone, Bitcoin is the most secure blockchain network in the world.
The Bitcoin hash rate, a metric that indicates the network’s computing power to confirm new blocks, increased by 25% in 2023.
Currently, the Coinwarz data platform shows that the Bitcoin hash rate is over 377 exahashes per second (EH/s). This value, according to McGlone, highlights how Bitcoin has managed to strengthen in recent months despite the uncertainty and growing regulatory pressure from governments and the bad timing the banking system is going through, as well as the political change to which it faces the United States. Federal Reserve of the States (FED).
Source: Coinwarz
Increase confidence in bitcoin
McGlone believes that this year Bitcoin and cryptocurrencies have escaped the downtrend they experienced in 2022, driven by aggressive interest rate hikes by the Fed and the collapse of major government projects. crypto industry, such as Terra, Three Arrows Capital and FTX.
However, with the Fed still threatening to tighten monetary policy further, the risk of crypto assets entering a new bear cycle is still present.
However, it is also true that the banking crisis, which has led the Fed to print billions of dollars in recent weeks, has become a catalyst for increasing investor confidence in Bitcoin and crypto assets.
McGlone’s “Cryptos vs. Liquidity Contractor, Fed” report points out that the global financial crisis has made Bitcoin a much more mature and resilient alternative asset.
Bitcoin Breaks $25,000 Resistance, McGlone Says
In his analysis, McGlone claims that Bitcoin overcame the resistance of $25,000 per unit and as an investment asset it performed much better than that of commodities and precious metals such as gold. gold, considered one of the most valuable safe-haven assets. of the traditional system.
Thus, the current situation of banks in crisis greatly favors the growth of Bitcoin, leading the cryptocurrency to become the best performing investment asset this year.
This YDT (Year to Date) growth of Bitcoin may indicate that the market-leading cryptocurrency is ready to enter a new super cycle and reach new highs, the Bloomberg analyst said. This 2023, Bitcoin records a growth of more than 70% in its price.
Bitcoin rebounds from 2022 bear cycle
The financial crisis and the collapse of several major companies and projects in the crypto industry sent cryptocurrencies into a bearish cycle last year. The Bitcoin price fell from over $50,000 in early January to just $15,590 per unit in November.
The fall in the price of Bitcoin and crypto assets has forced many cryptocurrency miners to disconnect their equipment due to the low profitability offered by this activity at this time. Several cryptomining companies have even put their mining equipment up for sale to access cash or pay off debt, temporarily affecting Bitcoin’s hash rate.
However, the scenario has changed and since last November the price of Bitcoin has been on the rise, as has the computing power of the blockchain.
Jesse Myers, a hedge fund manager, agrees with McGlone that Bitcoin could be approaching a tipping point. Myers assures that the price of cryptocurrency may reach stratospheric levels due to the global financial crisis.
Additionally, US investor and former CTO of Coinbase Balaji Srinivasan considers it “reasonable” for the price of Bitcoin to rise to $1 million in the coming months.
IMPORTANT: The content of this article is made for informational purposes only and, in no case, what is written here should be considered as advice or an investment recommendation. fkams News reminds you that before making any investment, you need to educate yourself and know where you are investing your money, as well as the advantages and disadvantages of the system. We detach ourselves from the actions and consequences that ignorance can bring. If you decide to invest in this asset class or any other asset class, you are solely responsible for the consequences that your decisions and actions may have.
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