The Bitcoin price has risen above the $24,000 mark again. After the heavy losses and the drop below $20,000, the cryptocurrency recovered in record time from the bank shock of the past few days. Since a new bank bailout in the US could be imminent, the price is now exploding back to old heights. Why is Bitcoin up? Will a Bitcoin 30K price happen soon?
How did Bitcoin price move in the last few days?
The Bitcoin course had to experience a massive crash in the last few days and was then able to recover in record time. First, the Bitcoin price fell below $20,000 from slightly above the $22,000 mark. It was announced that Silvergate Bank and Silicon Valley Bank would be insolvent, leading to the crash.
But within just 2 days, the Bitcoin course recovered again . After a slight stabilization above the $20,000 mark, the price rose again massively yesterday and climbed back above $22,000. The crash was over.
Now, this tailwind has fueled a massive rally that has seen bitcoin price surge above the $24,000 mark. At the moment it is not foreseeable how much the price can rise.
Why is Bitcoin up today?
The US bank crash hit the crypto market directly. Silicon Valley Bank ranked among the top 15 largest banks in the US by total assets. Since the reserves of many crypto companies and stablecoins such as USD Coin were also in the bank, a crisis ensued. Stablecoins such as USDC and DAI could no longer be kept stable in the short term.
But the rapid recovery of the Bitcoin price strengthens the Bitcoin asset on the financial market again. With the failure of the Silicon Valley Bank, there is massive uncertainty and Bitcoin is becoming more popular as a reserve currency in these uncertain times. Confidence in the banking system continues to decrease, from which Bitcoin benefits.
In addition, a major bank bailout could be pending. To do this, the FIAT money would have to be devalued again, which would make Bitcoin much more valuable again in the future.
BTC 30K: Can this price happen soon?
Bitcoin price is moving towards the $25,000 resistance at record speed. At this point, the rise may slow. With the current momentum, if Bitcoin price breaks resistance in the next 1 to 2 weeks, the price could quickly rally towards $30,000.
Overall, the crypto market appears to be headed back up. Only now could the Bitcoin course really take off in 2023 and actually rise again towards $ 50,000 this year. 2019 has shown that even the second year of a bear market can see sharp increases.
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Source: https://cryptoticker.io/en/bitcoin-price-explodes-as-us-banks-risks-liquidity-crunch-btc-30k/