Bitcoin Price Approaches $28,000 Mark As BTC Soars To Highest Since June
After cryptocurrencies began their rally on Friday, passing $27,000 for the second time this week, the Bitcoin price has recovered almost all of its losses from 2022.
In recent days, the cryptocurrency markets have escaped the grip of the bears, with the majority of tokens breaking out of consolidation to the upside. At the time of writing, Bitcoin was halfway to its $28K target – the highest since nine months ago – and was trading at $27,519, up 36% from last week, according to statistics from crypto market tracker Coingeckos.
Bitcoin price shows resilience
The price of Bitcoin rose 22% in the last two weeks and 13% in the last 30 days, according to the latest data. The increase has boosted the worldwide crypto market capitalization by over 5.4%. While some market experts say this is a short-term bounce, it appears that a more significant price move is imminent.
Overnight data from the Federal Reserve’s balance sheet that indicated the injection of about $300 billion into the economy as part of the response to the banking crisis served as a spark for fresh gains.
Bitcoin emerges victorious from the banking crisis
In the wake of last week’s banking crisis, investors have applauded the resilience of cryptocurrency prices. It started with the closings of Silicon Valley Bank and Signature Bank late Sunday, but all week the spotlight was on First Republic Bank. Some major US financial institutions came to the rescue late Thursday, putting in a total of $30 billion.
In light of the recent instability in the financial sector, many have stated that Bitcoin’s narrative is changing. Inflation and interest rate hikes by the Federal Reserve continue to have a significant impact on cryptocurrency price movements.
The Bitcoin market may have mixed effects from the Fed’s interest rate move. A rise in interest rates could increase borrowing costs, which could reduce demand for cryptocurrencies as investors seek safer and more reliable investments.
A rise in interest rates could result in a rise in the US dollar, which could make cryptocurrencies more expensive for foreign investors. Alternatively, as interest rates rise in the traditional financial markets, some investors may turn to cryptocurrencies as an alternative investment choice.
BTC total market cap at $528 billion on the weekend chart at TradingView.com
Crypto: Cushion against inflation
This is because virtual currencies are often seen as a hedge against inflation and an alternative form of storing assets. In addition, some analysts argue that a rise in interest rates could increase appetite for cryptocurrencies as consumers seek to diversify their investments and protect against potential economic downturns.
Ultimately, the impact of a Federal Reserve rate hike on the cryptocurrency industry is complex and may depend on a number of variables, such as the exact economic circumstances at the time of the rate hike and investor sentiment toward cryptocurrencies.
The next Bitcoin price point is tense as many investors look to increase their portfolio returns. This expected price matches an expert forecast for Bitcoin 2023-2030.
– Selected image from NASA