- In the midst of a banking crisis, the price of Bitcoin (BTC) has risen 16% in seven days, exceeding $28,000 per unit.
- During the weekend, the price reached more than $28,000 per unit, a price that had not been reached since June 2022.
The last few weeks have been marked by news about major banks in trouble and governments issuing bailouts to save them, and in the midst of all this, Bitcoin (BTC) price has risen 16% in seven days. Is this your chance to show your potential?
For those who may not know, Bitcoin was born as a response to the crisis bank of 2008. In itself, the idea behind the leading crypto is to give people decentralization and power over their money, since the problem with fiat currencies and banks is that others have control over the value and use of your money.
Central banks continue to print fiat currencies, despite the fact that this may cause inflation. While, on the other hand, banks can use your deposits to generate investment money and therefore lose it.
Under this contextBitcoin gives people control over their money. It is a decentralized currency and whose supply is fixed, and in a potential banking crisis scenario, it would be the perfect moment to prove its worth.
Bitcoin rises 16% in the last seven days
During the weekend, the price reached more than $28 thousand dollars per unit, a price that had not been reached since June 2022, and it has been hovering between $28 and $27 thousand dollars. At the time of writing this article, it is around $28,040.
Considering that on March 12 the price of BTC was $20,500, the price of the leading crypto has increased by 38% since then. and since the beginning of the year, it has increased by approximately 70%.
This makes Bitcoin one of the best performing assets of the market year, outperforming the shares of Wall Street banks. For example, the S&P 500 is only up 3% year-to-date, while the Nasdaq is down 14%.
Banking sector in crisis
The banking sector is under great pressure after the collapse of Silicon Valley Bank and Signature Bank earlier this month. In fact, despite the fact that US regulators announced that they would support deposits, concerns continued to escalate.
The problem became more acute when it was announced that UBS had agreed to buy Credit Suisse for US$3.2 billion.
All of this has raised concerns of a potential banking crisis. Bitcoin, often referred to as “digital gold,” has often been traded online with stocks. However, there are signs that he has disassociated himself, at least for the moment.
Vijay Ayyar, vice president of international development at Luno, explained to CNBC that “if one looks at the history of Bitcoin and why it was created in the first place, it was precisely because of events like this, where the current system shows signs of weakness and therefore it helps to have an uncorrelated asset”.
Where is the price of Bitcoin headed?
This is the question that everyone asks and whose answer is so difficult to find. The reality is that the price action of the leading crypto depends on many elements in the short term.
If a banking crisis develops, it will certainly be interesting to watch the behavior of the cryptocurrency. Especially if people decide to turn to BTC as a haven from the collapse of the banking system.
Markus Thielen, Head of Research at Matrixport, reported that the company reassessed its price targets for BTC and estimate that the new price estimate for summer 2023 is $36,000.”
Whereas, Balaji Srinivasan, former CTO of Coinbase, decided to stake it even higher by saying he believes that Bitcoin will make it to $1 million USD by June 17.
However, there is never a guarantee that the price of Bitcoin will continue to appreciate. It doesn’t matter who says it will be so.
You might be interested in: