Bitcoin Price Nears $28,000 Mark As BTC Skyrockets To Highest Since June
After cryptocurrencies started to rise on Friday, surpassing $27,000 for the second time this week, Bitcoin price recovered almost all of the losses of 2022.
In recent days, cryptocurrency markets have escaped the bears’ clutches, with most tokens breaking out of upward consolidation. At the time of this writing, Bitcoin is halfway through its target of $28,000 – its highest since nine months ago – trading at $27,519, up 36% from the previous week, according to statistics from the crypto market tracker Coingeckos.
Source: Coingecko
Bitcoin price shows resilience
Bitcoin price is up 22% in the last two weeks and 13% in the last 30 days, according to the latest data. The increase raised the global cryptocurrency market capitalization by more than 5.4%. While some market experts say this is a short-term bounce, a more significant price move seems imminent.
Source: Coingecko
Overnight data from the Federal Reserve’s balance sheet indicating an injection of about $300 billion into the economy as part of the response to the banking crisis acted as a spark for further gains.
Bitcoin emerges victorious from banking crisis
After last week’s banking crisis, investors applauded the resilience of cryptocurrency prices. It all started with the closure of Silicon Valley Bank and Signature Bank on Sunday night, but throughout the week the focus was on First Republic Bank. Some of the top US financial institutions came to the rescue on Thursday, depositing a total of $30 billion.
In light of the recent instability in the financial sector, many have claimed that the Bitcoin narrative is changing. Inflation and Federal Reserve rate increases continue to have a significant impact on cryptocurrency price movements.
Bitcoin market may see mixed effects from Fed rate movement. A rise in rates could increase borrowing costs, which could reduce demand for cryptocurrencies as investors seek safer, more reliable investments.
A rate hike could result in a rise in the US dollar, which could make cryptocurrencies more expensive for foreign investors. Alternatively, as interest rates rise in traditional financial markets, some investors may turn to cryptocurrencies as an alternative investment option.
BTC total market cap at $528 billion on the weekend chart at TradingView.com
Crypto: Inflation Cushion
This is because virtual currencies are often seen as a hedge against inflation and an alternative way of storing assets. Furthermore, some analysts claim that an increase in fees could increase the appetite for cryptocurrencies as consumers scramble to diversify their investments and hedge against potential economic downturns.
Ultimately, the influence of a Federal Reserve rate hike on the cryptocurrency industry is complex and may depend on a number of variables, such as the precise economic circumstances at the time of the rate hike and investor sentiment towards cryptocurrencies.
The next Bitcoin price is eagerly awaited as many investors want to increase their portfolio returns. This expected price matches a 2023-2030 expert forecast for Bitcoin.
-Featured image from NASA