Bitcoin (BTC) has shown remarkable resilience amidst the recent banking crisis, as the cryptocurrency’s value has continued to rise despite the economic turmoil. Since the onset of the crisis on March 10, Bitcoin has surged over 40%, with investors flocking to the digital asset as a safe-haven store of value.
Amid the crisis, the United States was seeing the development of the greatest bank 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 banking contagion with two more banks, Bitcoin is currently trading at $28,249, up 3.46% in the last 24 hours and 26.32% across the week. From the beginning of the banking crisis, the price of Bitcoin has increased by more than 43% since it was at its lowest point on March 10.
The rapid price rise of Bitcoin has been attributed to several factors, including a growing distrust of traditional financial institutions, increasing adoption of blockchain technology, and the proliferation of decentralized finance (DeFi) platforms. Interestingly, in the last week, BTC has madee the biggest weekly gain in almost four years.
Bitcoin technical analysis
The sentiment on the 1-day gauges at the finance and crypto tracking website TradingView is generally bullish. It suggests ‘buy’ at 15, as the oscillators indicate ‘neutral’ at eight and moving averages in the ‘strong buy’ range at 13.
Despite the bullish gauge, Michael van de Poppe remains cautiously optimistic for BTC in the near term acknowledging the potential for further price volatility. Poppe stated in a a tweet on March 20:
“Bitcoin didn’t hold above $27,700, which is now crucial if we’d like to see $30K this week. Rejecting there, and we’ll be seeing a deeper correction to $25K, most likely.”
Meanwhile, the current upturn in the cryptocurrency market, driven by the flagship decentralized finance asset, has given wings to Bitcoin mining company equities, with the price of these stocks posting large increases in terms of weekly performance.
Indeed, most Bitcoin mining businesses have seen their share prices rise due to the BTC price surge.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.