The Bitcoin price saw a massive boost in the last few days. Although it initially lost a lot of value due to the US bank crash, it subsequently benefited from people’s declining trust in banks and the FIAT system. Can Bitcoin reach 50k soon as a consequence? Let’s assess in this Bitcoin price analysis article.
How did Bitcoin perform in the last few days?
In the wake of the Silvergate and Silicon Valley bankruptcies, Bitcoin price saw a crash below the $20,000 mark. But for a short time, the price was able to stabilize above the $ 20,000 mark. After that, there was an immediate increase again and Bitcoin rose above $22,000.
The rise continued and we saw a price explosion within 1 to 2 days. First, the Bitcoin price jumped back above the $ 24,000 mark. Then the price was actually able to break the resistance at $25,000 and even briefly rose above $26,000.
It has stabilized below the $25,000 level for the past few days. The breakthrough did not cause further price explosions. Nevertheless, the Bitcoin price seems to be slowly touching the $25,000 mark again.
Can the bank crash boost Cryptocurrencies?
Confidence in the banking system continues to fall. With the crash of the Silicon Valley Bank, one of the 15 largest banks in the USA, there was a certain panic on the financial markets. The crypto market was also affected by the bank run, as large amounts of crypto companies were on these banks. Even stablecoins like USDC and DAI imploded in value.
However, Bitcoin was able to benefit after the short shock because it gets more trust. It is considered an alternative to the banking system because it is scarce, secure and resistant to censorship. The Bitcoin price has risen sharply in the last few days. This price increase was able to continue in the coming weeks.
Bitcoin Price Analysis: Can Bitcoin reach 50K?
The Bitcoin price was able to break the resistance at $ 25,000 for the first time in the last few days. Since the beginning of the year, the price has increased from $15,500 to $25,000. Should this increase continue in the coming quarters of 2023, a price of $50,000 would be very likely.
In addition, there is the observation that the Bitcoin price was able to rise massively 4 years ago, also in the second year of the bear market. At that time, the price had tripled since the beginning of the year.
With the loss of confidence in the banks and the rapid recovery of bitcoin from the crash, the cryptocurrency was further strengthened. Massive price increases therefore seem possible in the coming weeks and months.
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Source: https://cryptoticker.io/en/bitcoin-price-analysis-can-bitcoin-reach-50k-soon/