Bitcoin is up more than 70% in 2023, and this has pushed the price of the cryptocurrency upwards of $29k. This has happened despite the recent regulatory troubles at the world’s largest exchange, Binance. Other reports of the crypto wallet ban act by Elizabeth Warren also didn’t have much of a negative effect. And as Bitcoin hits $29k, investors are speculating that the price could spurge to $30k anytime. It’s just one big candle away from that major breakthrough.
Bitcoin marches towards $30k with confidence
Not considering the small pullbacks, the price action of Bitcoin has been very confident in 2023. Despite the feds trying to create panic with multiple news and exchange crackdowns, we haven’t seen a big correction. In fact, the banking crisis is so huge right now that it is preceding any negative impacts of other reports. Even Binance’s regulatory trouble with the Commodity Futures Trading Commission (CFTC) didn’t slow down the cryptocurrency.
Right now, we can expect a further leg up because, in the fear and greed index, we are still at 60, which is greed, and it has been like this for quite some time now. Generally, before any major reversal happens, the fear and greed index rises to extreme greed.
Is the US banking crisis really that big, like the year 2008?
Unlike the 2008 financial crisis, where banks worldwide were exposed to risky investments in the US housing market, there currently isn’t a similar system-wide issue. This means that there is no need for massive government bailouts or a global economic recession.
Since the last crisis, banks have been instructed to increase their capital holdings and adhere to stricter regulations regarding risk. Therefore, most experts predict that the effects of the current challenges will be limited.
However, the banking industry is highly intricate, making it challenging to pinpoint potential vulnerabilities until the system undergoes stress. Such a situation arose in September when the markets were caught off-guard by the new economic strategy of Liz Truss’s government and are now surfacing with the rise in interest rates and declining confidence.
Additionally, anxiety concerning the stability of banks tends to be contagious. This means that if customers become worried about the safety of their deposits, they can easily transfer their funds with the simple click of a button.
What are your thoughts as Bitcoin hits $29k due to the current banking crisis? Let us know in the comments below. And if you found our content informative, share it with your family and friends.
Also Read: ELIZABETH WARREN IS PUSHING THE SENATE TO BAN CRYPTO WALLETS WITH A NEW AML ACT.
