Bitcoin prices, which have continued to rise recently, surpassed USD 28,000 for the first time since June last year despite financial market turmoil.
According to Bloomberg News on the 19th (local time), Bitcoin rose to USD 28,258 during the day, rising nearly 70% this year alone.
Other virtual currencies are also on the rise, with Ethereum also rising 17% last week.
Bloomberg says the rise seems to be due to cryptocurrency, especially Bitcoin, is being recognized as a risk hedge despite the turmoil in the global financial industry and unexpected inflation.
Bitcoin prices rose despite the sharp fluctuation in U.S. two-year Treasury yields last week and the Chicago Option Exchange Volatility Index (VIX), dubbed the Wall Street “Fear Index,” soaring above 30.
Last week, financial markets fluctuated due to the bankruptcy of some U.S. financial institutions and concerns over a crisis in the global investment bank Credit Suisse, prompting some investors to call for an end to the key rate hike.
On the other hand, the U.S. core consumer price index (CPI) is higher than expected, deepening the Fed’s concerns ahead of this week’s regular meeting of the Federal Open Market Committee (FOMC).
Such uncertainties are afflicting various financial sectors, but bitcoin prices are on the rise as digital assets are recognized as a hedge against inflation.
Bloomberg also said Bitcoin continued to rise despite unfavorable factors in the coin industry, with the Stable Coin USDC, which was tied to the bankrupt U.S. Bank of Silicon Valley (SVB), once falling more than 10% from the benchmark price of $1 to below $0.9.