After cryptocurrencies began their ascent on Friday, topping $27,000 for the second time this week, the price of Bitcoin has regained nearly all of its 2022 losses.
In recent days, 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 target of $28,000 – its highest in nine months – trading at $27,519, a 36% increase from the previous week, according to statistics from crypto market tracker Coingeckos.
Bitcoin price shows its resilience
The price of Bitcoin is up 22% in the last two weeks and 13% in the last 30 days, according to the most recent data. The rise increased the global crypto market capitalization by more than 5.4%. While some market experts say this is a short-term bounce, a bigger price move seems imminent.
Overnight data from the Federal Reserve’s balance sheet indicating an injection of about $300 billion into the economy as part of the banking crisis response acted as a spark for further gains.
Bitcoin emerges victorious from the banking crisis
In the wake of last week’s banking crisis, investors applauded the cryptocurrency resilience prices. It started with Silicon Valley Bank and Signature Bank closing late on Sunday, but throughout the week the spotlight was on First Republic Bank. Some major US financial institutions came to his aid on Thursday night, depositing a total of $30 billion.
In light of recent instability in the financial sector, many have said that the narrative for Bitcoin is changing. Inflation and Federal Reserve rate hikes continue to have a significant impact on cryptocurrency price movements.
The bitcoin market could have mixed effects due to the Fed rate movement. Rising rates can increase borrowing costs, which can reduce demand for cryptocurrencies as investors seek safer and more reliable investments.
Rising rates can cause the US dollar to rise, which can 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 choice.
BTC total market cap at $528 billion on the weekend chart at TradingView.com
Crypto: Cushion against inflation
Indeed, virtual currencies are often seen as inflation protection and an alternative form of asset storage. Additionally, some analysts say a rate hike may increase appetite for cryptocurrencies as consumers strive 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 hike. rates and investor sentiment towards cryptocurrencies.
The next Bitcoin price is eagerly awaited as many investors want to increase their portfolio returns. This expected price corresponds to a 2023-2030 expert forecast for Bitcoin.
– NASA featured image