The price of bitcoin has been on an upward trajectory since the historic bank runs of 2023, but it was just denied from above the critical $30,000 mark.
After the share price drop of First Republic Bank, the leading cryptocurrency surged more than $1,000 intraday to over $28,000. Combining a fresh story with a retest of earlier levels might be quite positive for BTC. Here we take a deeper look at how the bullish price movement may be strengthened by the ongoing turmoil in the banking sector.
Bitcoin has benefited greatly from the conventional banking system’s recent difficulties with liquidity and bankruptcy. There were extensive bank runs in early March, including at Silicon Valley Bank.
Because of this, BTCUSD increased by almost 40% in a matter of days. Now that investors are fleeing First Republic Bank in droves, draining the bank of over $100 million in deposits, Bitcoin is on the rise again.
Bitcoin retesting and maintaining a major support level might build confidence in crypto bulls and drive prices higher, which is essential since a $1,000 rise is remarkable in and of itself. The magnitude of setbacks would likewise diminish. Small price drops reflect increased demand from buyers.
Another indicator that crypto winter is over and things will heat up in the next weeks would be for Bitcoin to make new 2023 highs.
The stock price drop at First Republic Bank may be traced back to the bank’s unfavorable earnings report for the first quarter. More than $100 million was reported missing from deposit accounts in the first quarter, the bank said.
Charles Gasparino of Fox Business News reports that bankers are preparing for a government receivership of First Republic Bank since “private sector solutions” have failed to excite purchasers and investors.
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