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Home » News » Bitcoin Price Prediction – Why Breaching $28k is a Signal of Strong Bullish Intent as Banks Struggle

Bitcoin Price Prediction – Why Breaching $28k is a Signal of Strong Bullish Intent as Banks Struggle

Bitcoin, the world’s largest and most well-known cryptocurrency, continued its upward trend on Monday morning, reaching $28,527. BTC is up more than 4% in the last 24 hours and more than 28% in the last week, making it one of the market’s best performers.

 

However, the reason for this upward rally can be linked to the ongoing banking crisis, which has pushed investors to seek other assets, resulting in higher demand and prices for cryptocurrencies.

It is worth recalling that the failures of Silicon Valley Bank and Signature Bank earlier this month put the global banking sector under pressure.

Moreover, the Swiss banking giant UBS’s emergency plan to buy its crisis-hit competitor Credit Suisse have played its major role in generating uncertainty in the global banking sector as it highlights how difficult it may be for banking institutions to maintain stability in this tough time.

On the flip side, the Federal Reserve will announce its interest rate decision on March 22, which might have a significant impact on the economy. Although, the Federal Reserve must decide whether to raise interest rates or not.

If they do, it may assist to keep inflation under control while harming the economy and resulting in additional bank collapses. Because of this unpredictability, some investors are putting money into Bitcoin as a possible hedge against the current financial system.

Bitcoin Price

The current Bitcoin price is $28,323, and the 24-hour trading volume is $48.7 billion. Bitcoin has increased by nearly 4% in the previous 24 hours.

Bitcoin is now the market leader, with a live market cap of $547 billion. It has a total quantity of 21,000,000 BTC coins and a circulating supply of 19,322,875 BTC coins.

Bitcoin Surges 30% Amidst Growing Concerns Over Global Banking System

Bitcoin’s price has been on the rise and surged by more than 30% in the last week as concerns about the global banking system have escalated. However, Greensill Capital’s recent bankruptcy, as well as Credit Suisse’s crisis, have revived fears about the financial system.

As a result, investors are looking for alternative assets like Bitcoin, which is seen as a hedge against established financial institutions.

The global cryptocurrency market has been glowing green and has gained significant traction. As a result, most cryptocurrencies increased in value ahead of the Federal Reserve meeting.

Although, the fears of a financial crisis weighed on the stock market mood but benefiting the cryptocurrency market.

It is worth recalling that the central banks adopted emergency liquidity measures in order to aid the banking industry and avert further collapses.

Despite this, worries of further harm from the financial industry remained following the unexpected demise of big US corporations last week.

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