Bitcoin will likely witness a strong rally after gaining 70% since the start of 2023, according to analysts.

The gain will be “bigger” than any since 2021, when the cryptocurrency hit a record high, after being considered a hedge against the banking sector’s woes in the US and Europe, Bloomberg reported, citing analysts.

The token currently is stable at $28,000, but key charts suggest a temporary hiatus. Technical charts point to the price objective at nearly $35,000.

“With interest-rate markets gone from pricing in rate hikes to pricing in rate cuts, there is now a gentle tailwind supporting Bitcoin,” Tony Sycamore, market analyst at IG Australia Pty, wrote in a note.

In addition, the recent $300 billion increase in the US Federal Reserve’s balance sheet to support liquidity in the banking sector is positive for risk assets, said Chris Weston, head of research at Pepperstone Group Ltd. He added the move had helped crypto and gold.

Bitcoin’s resurgence drove the digital-asset market to about $390 billion in value this year after a $1.5 trillion losses in 2023.

(Editing by Seban Scaria )