Marcus Sotiriou says US bank closures acted as catalyst for Bitcoin price
Market analyst Marcus Sotiriou of listed digital asset broker GlobalBlock (TSXV:BLOK) weighed in on the recent Bitcoin (BTC/USD) price movement that saw it briefly trade above $28K for the first time in months over the weekend.
Sotiriou believes the recent shutdowns in the US banking sector acted as a catalyst for the bitcoin price.
The start of a new Bitcoin bull trend
After a great weekend performance that saw bitcoin hit a high of $28,527.72 earlier today, bitcoin appears to be consolidating its recent gains after settling at around $27,697. According to Marcus Sotiriou, the latest price rally signals the start of a new bull trend.
In a note to the media about recent moves and news in Bitcoin and digital assets, Sotiriou said:
“Technically, this signals the start of a new bull trend for digital asset trading and the end of the bear market. To be sure of a trend reversal, we need to see how Bitcoin reacts to the $25,200 support level.”
The relationship between Bitcoin price and bank closures
The analysts further stated that the recent Bitcoin price movements were in a sense triggered by the collapses seen in the US banking sector which has seen several banks including Silicon Valley Bank (Nasdaq: SIVB) collapse. Sotiriou said:
“The recent shutdowns of US banking giants have acted as a catalyst for Bitcoin’s price increase, as the downsides of the banking system are a key proponent of decentralized assets like Bitcoin.”
The analysts also said that there is a lot of speculation in the market and we could see a big move in either direction, especially due to the increase in open interest in Bitcoin futures. He stated:
“Despite open interest not giving us knowledge of the direction of the positioning, it shows us that there is a lot of speculation in the market right now, so we can see a big move in either direction. Due to the funding rate of most coins that are green, I expect a flush in the market soon, as a positive funding rate indicates that the positioning in the futures market is mainly aggressive longs – when there is high open interest in aggressive longs, it usually means that overleveraged longs need to be wiped out.”
Sotirious’ reasoning seems to align with venture capitalist and angel investor Balaji Srinivasan who is betting $1 million on Bitcoin reaching $1 million in the next 90 days. Balaji says hyperinflation is happening now.
