Bitcoin craze is back! Credit Suisse, Silicon Valley Bank collapse leads to 40% rally
Bitcoin, the world’s largest cryptocurrency in terms of market capitalization, has risen up to 40 percent ever since the collapse of several highly regarded global financial institutions. The cryptocurrency breached the $28,000 mark for the first time since June 2022, fueled by investor distrust of the banking system following the collapse of Silicon Valley Bank, First Republic Bank, Silvergate and Credit Suisse Bank.
The CoinDCX Research Team enlisted the reasons for the current crypto rally and their future outlook for the cryptocurrency.
“In recent times, Bitcoin has experienced a significant increase in value, rising more than 28% in the past week and trading at $28,000. BTC dominance has also reached an all-time high of 44.4 percent after six to eight months. This sudden price increase has been attributed to various factors, including the long-term trend of accumulation during dips below $20,000 and the liquidity crunch faced by the banking sector, they told Business Today.
Parth Chaturvedi, Crypto Ecosystem Lead, CoinSwitch explained that despite the rally, volatility in the digital currency cannot be ruled out.
“It was heartwarming to see the crypto market rise against all odds last week. Despite the many sell-offs in global stocks and ‘risky assets’, Bitcoin (BTC) finally broke out of the $20,000-$25,000 range it had been trading in for several weeks,” he told Business Today.
He added: “However, caution is still needed as news in the banking sector may still affect market sentiment. Regulators may continue to make it difficult for banks to process crypto-related transactions, as has been the case with Signature Bank. Another thing to watch after will be the Fed’s meeting on Wednesday.”
The CoinDCX Research Team spoke about the outlook for other crypto-tokens: “In the wake of this, more investors may currently consider Bitcoin as a safe haven. This may lead to Bitcoin’s value continuing to rise to levels above $30,000 in the near future. Additionally Crypto projects with good development such as ETH, MATIC, LIDO Finance and UNISWAP are expected to see significant progress in the coming days.”
On Tuesday, Bitcoin traded at $27,561, according to data from CoinMarketCap.
See also: Binance’s boss explains how to secure your funds in crypto – BT TV BusinessToday
Also read: ‘Are they sharks or loan sharks?’ Every third deal on Shark Tank India is a debt deal – BusinessToday
