We thought he was buried for good, and now he’s making a comeback. No, we’re not talking about D’artagnan or Donald Trump, but about Bitcoin. The latter crossed the threshold of 40,000 dollars on Monday, its highest level since May 2022. After losing 60% of its value last year, the most famous of cryptocurrencies has regained momentum, with a crazy rise of 150% since the start of the year.
To understand this express resurrection, 20 minutes called on two experts. Antoine Andreani, senior financial markets analyst at XTB, and Pierre Noizat, founder of Paymium, a cryptocurrency exchange platform.
Why is Bitcoin (re) in great shape after having a hell of a time?
In November 2022, the bankruptcy of the FTX platform, number two crypto exchange just before its fall, led to a low for Bitcoin: “barely” more than $15,000. “But after this dip following a cyclical reason, it is normal – and predictable – to see Bitcoin rise,” estimates Antoine Andreani. But unlike usual, with rapid ups and downs, Bitcoin this time rose again “gradually, discreetly, before its return exploded in the media in recent weeks”.
A return all the more predictable as cryptocurrency is a growing market, increasingly popular and therefore with more and more income, according to Pierre Noizat: “There is a growing demand to use the crypto network as a means of of payment, whether at the level of countries, such as El Salvador, but also of an increasingly technological and informed population. »
The founder of Paymium adds a more cyclical reason: “The increase in interest rates leads to an increase in the value of assets seen as a refuge, such as gold – which will skyrocket in 2023 – or Bitcoin. »
Have we buried Bitcoin too early in 2022?
“Yes, as usual,” smiles Antoine Andreani, who is clearly not his first interview on the subject. It’s the nature of Bitcoin to make exponential rises in value following bubbles, fall a lot to readjust and when everyone is selling it at its all-time high, then skyrocket again with a new bubble. »
Implacable conclusion for the analyst: “Stopping at a fall to bury Bitcoin was a mistake, unless the latter reached an extremely low value – less than 4,000 dollars. But at 15,000 at its lowest, there was no reason to be so fatalistic. Especially since it wasn’t the first time he had stumbled and gotten back up. »
“Bitcoin will always have ups and downs, it’s in its nature. But it is bound to progress in terms of adoption and technology,” also reassures Pierre Noizat.
Will it last?
Yes, according to our two experts. Still with the fluctuations mentioned earlier, but with stronger kidneys. “Bitcoin is becoming more and more consensual,” notes Antoine Andreani. In 2017, he was seen as an enemy and a danger by Wall Street. Today, Larry Fink speaks of it as “digital gold” and “the future”. »
This is the CEO of the company BlackRock. And, in a more romantic way, perhaps the stone that was missing from the Bitcoin building to definitively reach the summits. BlackRock is the largest asset manager in the world, and this year made a request to develop financial products indexed to Bitcoin. “This interest from traditional banks strengthens its credibility,” believes Antoine Andreani.
The right time to invest? Pierre Noizat is cautious: “It all depends on when you want a return on investment. If it’s in 3-4 years, you can invest with peace of mind. In a more short-term sense, a few months is riskier. » But at least you know everything.