In the last 24 hours, Bitcoin and other major altcoins have witnessed a notable upswing in their value, with BTC surging by 2.2% and inching closer to the $30,000 threshold on Thursday. The driving force behind this price hike is the mounting apprehension in the market regarding the banking sector.
PacWest Bancorp has been scrutinized amidst the prevailing concerns surrounding regional banks in the US, particularly in the aftermath of the collapse of three analogous California-based institutions. Certain cryptocurrency proponents posit that the waning trust in conventional fiat currencies is fueling the burgeoning allure of Bitcoin.
Bitcoin has experienced a remarkable surge of over 75% year-to-date, reaching a peak of $31,000 this year. Altcoins such as ETH and SOL have also seen a notable 2 to 3% increase. Furthermore, Bitcoin has repeatedly surpassed the $30,000 threshold in recent weeks.
The recent 25 bps interest rate hike has positively impacted the cryptocurrency market, and the Federal Reserve’s neutral approach to raising interest rates has contributed to this development. Interestingly, BTC’s recent price movement coincided with the Federal Reserve report, which speculated that another US bank failure could be on the horizon. Matrixport, a reputable cryptocurrency services provider, has suggested that if Thursday’s interest rate increase signals the end of the current cycle, Bitcoin could experience a significant 20% surge, potentially reaching $36,000.
In the wake of 2022’s tumultuous cryptocurrency landscape, 2023 has brought about a similar fate for banking behemoths. As financial institutions continue to crumble, cryptocurrencies are emerging as a reliable and secure means of storing value.
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