Cryptocurrency investments have surged, leading Nigerians and other players to earn over N68 trillion in one week, largely due to the rise in Bitcoin’s value. Despite the high returns, cryptocurrency investments are volatile and risky, and investors should exercise caution. The recent collapse of US banks has also fueled the rise in Bitcoin prices, as decentralized currencies become more popular among investors. FTX founder Sam Bankman-Fried, accused of causing the cryptocurrency market’s collapse, has been arrested in the Bahamas after the US government demanded his arrest and filed criminal charges. Finally, Nigerians continue to turn to Bitcoin as a potential hedge against inflation and currency devaluation, even as controversies surrounding the digital asset continue.
Cryptocurrency investments have been soaring and Nigerians and other players in the market have made over N68 trillion in just one week. According to experts, US bank failures have fueled the rise in cryptocurrency prices. Despite the high returns, cryptocurrency investments carry a high level of risk and volatility, which investors should be aware of.
Between March 12 and March 19, 2023, cryptocurrency investors in Nigeria and other countries recorded massive gains of N68.59 trillion. This was due to the increase in the value of Bitcoin, which rose from $20,507.69 to $28,197.25 during that week, as per data from Marketcap. This increase in Bitcoin’s value helped push the market capitalization from $395,849,009,604 to $592,142,194,343, leading to substantial profits for investors.
The surge was particularly important for Nigerian investors who have been actively participating in the cryptocurrency market amidst the country’s economic uncertainties. Despite the controversies surrounding Bitcoin, many Nigerians continue to turn to the digital asset as a potential hedge against inflation and currency devaluation. Platforms like Paxful and Binance have made it easier to buy and sell Bitcoin for Nigerians.
The rise in Bitcoin prices has been attributed to recent events around the failure of US banks such as Silicon Valley Bank and Signature Bank, the biggest bank failures since 2008. According to Vijay Ayyar, Vice President of Corporate Development and International at crypto exchange Luno, this has shone a spotlight on the power of decentralized currencies that people can fully custody and own. Decentralized finance is beginning to hit home in terms of a concept to many more people now.
Since the start of 2023, Bitcoin prices have surged by 50%, as per CNBC reports. Major digital currencies like Ether have rallied 42% this year, while Solana is up more than 100%. However, investors should remain cautious as cryptocurrency investments carry a high level of risk and volatility.
One of the reasons for the rise in Bitcoin prices could be the challenges in the financial sector leading to a slowdown in the pace of rate hikes, which could help risk assets like stocks and Bitcoin. However, in another report, Sam Bankman-Fried, the FTX founder accused of being responsible for the collapse of the cryptocurrency market, has been arrested in the Bahamas after the US government demanded his arrest and filed criminal charges against him. Bankman-Fried was previously wealthier than Aliko Dangote, making his arrest a significant fall from grace.
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