Stable Bitcoin Performance in 2023

In September 2023, Bitcoin demonstrated an impressive growth of approximately 4.7%. This figure is considered one of the highest in recent years, highlighting the outstanding performance of this cryptocurrency. Such growth has positioned Bitcoin, which is trading above $27,400 at the time of writing, with the potential for further strengthening its position.

It is surprising that Bitcoin remains stable despite the high refinancing rates in the United States. The Federal Reserve maintained a strict monetary policy throughout the past year, increasing the key interest rate by a record 525 basis points to combat inflation.

However, high interest rates have created challenges for retail credit organizations, with many of them finding themselves in a difficult position and even filing for bankruptcy in the early part of the current year. This situation was exacerbated by the redirection of institutional capital towards treasury bonds due to their increased yields, which also had an impact on cryptocurrencies and other high-risk assets.

Currently, the key rate in the USA is held within the range of 5-5.25%, and while the aggressive strategy of the Federal Reserve has yielded results, reducing inflation from 8.2% in September of the previous year to 3.7% at the moment, the Reserve intends to achieve its target inflation rate of 2%. This implies a continued increase in the refinancing rate in the future.

Despite stringent monetary conditions and challenges faced by retail credit organizations, the flagship of the cryptocurrency market, Bitcoin, continues to maintain relative stability in a global context. Its high performance and resilience make it one of the key cryptocurrencies that investors and traders are paying attention to in 2023.

It is also worth noting that October is traditionally considered a favorable period for the entire crypto industry. This may contribute to further strengthening the positions of Bitcoin and other cryptocurrencies.