By Mark Ackman
Notwithstanding the current financial instability, Bitcoin enthusiasts are now focusing on the cryptocurrency’s next major milestone, $US30,000.
The largest digital coin has gained 25% since March 8, when Silicon Valley Bank failed and frightened lenders. The digital currency has surged by almost 20% since the start of the month, trading at over 28,000 US dollars.
This is the highest it has been since June 2018, when a series of digital asset explosions rattled the sector and lowered prices.
With the fall of the lender Celsius, which has now gone bankrupt, it was last traded for $US30,000 in June as well.
Investors may be comforted by the idea that Bitcoin and other digital assets are beyond financial management and controllers’ grasp.
Because of this, they are in a position that, in some ways, sets them apart from the banking sector as a whole.
Chuck Cumello, EFS’s CEO and president, said that without the Fed, it’s simple to see the attraction. Yet that was one of its siren music, which was one of the elements that attracted and motivated people to it.
He is not surprised in any way, form, or shape that it’s up in this kind of environment, he said. “That’s not to say that Bitcoin does not face a variety of other problems that the ordinary citizen should be worried about.”
Additional US Aid
Investors are on the lookout for additional US lenders that may still be influenced as controllers look to stem farther offshoot.
Signature Bank, Silicon Valley Bank, and Silvergate Capital are the three US lenders that have been involved in the current episode. The Silicon Valley Bank is the most significant of these three banks.
UBS Group and the Swiss government agreed to buy a prominent financial services firm for over $US3 billion this weekend. The government was the one that negotiated the terms of this deal.
According to many who follow the market, this is all contributing to Bitcoin’s recent surge. A team of digital assets market data providers posted an article entitled Bitcoin has been on an incredible run.
During the past week, there has been a dramatic shift in sentiment towards the market, said one analyst.
Cryptocurrency Trading Reached Its Peak
They added that investors’ confidence in crypto’s original thesis has been reinforced by the ongoing economic collapse.
According to the company’s data, cryptocurrency trading achieved its highest level since FTX’s crash last year.
Proponents of Bitcoin have also pointed to the cryptocurrency’s other stated qualities as reasons to keep the coin in this climate.
One of its alleged qualities is that, because of its scarcity, it might be used as a hedge against inflation. Yet, during the past two years, the coin’s value has dropped by more than 50% while the cost of living has risen.
The currency, like others, has been increasing in value, and the $US30,000 threshold has remained a significant aim for the largest token. Even so, investors prefer to place psychological importance on figures that are round.
Once the token’s value went below $US30,000 last year, Three Arrows Capital’s developers said they were disappointed.
But, as a result of its recent surge in value, Bitcoin is currently trading at levels that are considered to be technically overvalued.
According to Matt Maley, chief market analyst at Miller Tabak & Co., this may make it harder to reach the milestone. In the past, Bitcoin was a volatile asset that fluctuated in tandem with changes in the market’s liquidity.
Maley said he thinks the increase has more to do with extra liquidity than investors considering Bitcoin as a flight-to-safety asset.
The Federal Reserve pumped money into the market last week in response to the current situation. Bitcoin is now being overbought, which means that if the present crisis subsides, it will have a hard time trading over $US30,000.