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From the beginning of the drama involving US banks, Bitcoin has been on a bull run, recording considerable gains over the course of the last week. This bull run came to an end yesterday.
The most recent string of bank failures in the United States has set off a widespread case of FUD (fear, uncertainty, and doubt) among investors in cryptocurrencies. Because of this, the value of cryptocurrencies like Bitcoin saw a precipitous decline (BTC). On March 14, a noteworthy event involving Bitcoin (BTC) was recorded for the first time when the asset passed a crucial barrier of $24,000. The decision was made when the president of the United States addressed the stability of the banking sector.
Bitcoin reclaims $28K
On March 17, the price of Bitcoin had recovered to the level of $26,000, which is just a hair below its all-time high for the year at the time it was reached at the time.
Once a few hours had passed, the cryptocurrency market saw yet another momentous milestone in the midst of the financial crisis. This occurred when Bitcoin (BTC) climbed to new highs of $28,000, a price that had not been reached since June 2022. The digital currency has also led Goldman Sachs' list of the best-performing financial assets.
Earlier in 2023, the global banking powerhouse Goldman Sachs identified bitcoin as the asset with the highest performance worldwide.
This statement came at a time when the cryptocurrency market was steadily recovering from the losses it sustained the previous year, which were in part brought on by the failure of FTX. After hitting a low of $16,547, Bitcoin surged by 38.21% to reach a new all-time high of $23,000.
While investors attempt to drive the price of the asset up to $30,000, it is now facing resistance at the $28,000 level.
BTC 7-Day Chart | Source: CMC
What next for BTC?
During his appearance on CNBC's Power Lunch with Kelly Evans, Strike's Chief Executive Officer Jack Mallers discussed the significance of Bitcoin in the context of the ongoing global financial crisis. According to Mallers, global hyperinflation will lead the price of bitcoin to skyrocket to one million dollars.
Customers at malls have the opinion that the Federal Reserve has tarnished its image by creating more money despite its commitments to control inflation at 2% or below. This was done in order to save the banking sector.
As a consequence of this, Mallers forecasts that the Federal Open Market Committee's statement on the interest rate, which is scheduled to be published tomorrow, would push bitcoin prices higher in response to increased demand.
In addition, Mallers maintained that despite the increase in demand, there will only be 21 million units of bitcoin available in circulation. In particular, Mallers attacked the current for being concentrated, arguing that the current's founders owned vast sums of money, which was to the disadvantage of the secondary market.
As a consequence of this, the chief executive officer thinks that other cryptocurrencies should be used for speculative reasons, and that ultimately they will need to be employed in order to accumulate extra bitcoins.
Is the current monetary system credible?
The collapse of centralized financial organizations such as FTX, Credit Suisse, First Republic Bank, Silvergate Capital, and Signature Bank, amongst others, has increased investor interest in risky assets such as Bitcoin and gold.
Elon Musk, a millionaire in the technology industry, has made the connection between the present financial crisis and the terrible economic calamity that occurred in 2008. In addition, the global financial crisis that began in 2008 and resulted in the birth of bitcoin the following year was preceded by the failure of Lehman Brothers Inc., a company that had been in operation for 158 years at the time of the crisis. Bitcoin was created as a result of this disaster.
It is projected that during the next several years, the price of bitcoin will rise higher than it has ever been before. This is due to the Federal Reserve printing massive numbers of dollars in an effort to save the collapsing banking industry. Also, it is anticipated that an increasing number of governments would recognize Bitcoin as a deflationary asset, if not legal money.