Bitcoin has increased by over 40% since the March banking crisis began
Bitcoin (BTC) has shown remarkable resilience amid the recent banking crisis, as the cryptocurrency’s value has continued to rise despite the economic turmoil. Since the crisis began on March 10, Bitcoin has surged over 40%, with investors flocking to the digital asset as a safe haven of value.
Amid the crisis, the US saw the unfolding of the biggest banking collapse since the global financial crisis, as a key lender to the technology sector, Silicon Valley Bank, faced a bank run. When authorities stepped in to take control, customers frantically withdrew their money from the California-based lender.
Around the time of the bank collapse, BTC was trading at $19,669. Despite the recent news of bank contagion with two more banks, Bitcoin is currently trading at $28,249, up 3.46% in the last 24 hours and 26.32% for the week. Since the beginning of the banking crisis, the price of Bitcoin has increased by more than 43% since its lowest point on March 10.
The rapid rise in the price of Bitcoin has been attributed to several factors, including a growing distrust of traditional financial institutions, the growing use of blockchain technology, and the proliferation of decentralized finance (DeFi) platforms. Interestingly, in the last week, BTC has achieved its biggest weekly gain of almost four years.
Bitcoin Technical Analysis
Sentiment on the 1-day gauges on financial and crypto tracking website TradingView is generally positive. It suggests “buy” at 15, as the oscillators indicate “neutral” at eight and moving averages in “strong buy” territory at 13.
Despite the bullish gauge, Michael van de Poppe remains cautiously bullish on BTC in the near term and acknowledges the potential for further price volatility. Poppe stated in aa chirping March 20:
“Bitcoin did not hold above $27,700, which is now crucial if we want to see $30K this week. Reject there and we will see a deeper correction to $25K, most likely.”
Meanwhile, the current upswing in the cryptocurrency market, fueled by the flagship decentralized financial asset, has given wings to shares of the Bitcoin mining company, and the prices of these shares are showing big increases in terms of weekly performance.
In fact, most Bitcoin mining companies have seen their share prices rise due to the BTC price rise.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
