Bitcoin craze is back! Credit Suisse, Silicon Valley Bank collapse leads to 40% rally

Bitcoin, the world's largest cryptocurrency in terms of market cap, has rallied up to 40 per cent ever since the collapse of multiple much-vaunted global financial institutions. The cryptocurrency breached the $28,000 mark for the first time after June 2022, fueled by investor’s distrust in the banking system after the collapse of Silicon Valley Bank, First Republic Bank, Silvergate, and Credit Suisse Bank.

CoinDCX Research Team enlisted the reasons for the current crypto rally and their future outlook for the cryptocurrency.

“In recent times, Bitcoin has experienced a significant surge in its value, rising by more than 28% over the last week and trading at $28,000. The BTC dominance has also reached an all-time high of 44.4 per cent after six to eight months. This sudden increase in price has been attributed to various factors, including the long-term trend of accumulation during dips below $20,000 and the liquidity crisis faced by the banking sector,” they told Business Today.

Parth Chaturvedi, Crypto Ecosystem Lead, CoinSwitch explained that despite the rally, volatility in the digital currency cannot be ruled out.

“It was heartwarming to see the crypto market rise against all odds last week. Despite the many sell-offs in global equities and 'risky assets,' Bitcoin (BTC) finally broke out of the $20,000- $25,000 range it was trading in for weeks,” he told Business Today.

He added: "However, caution remains the need of the hour as the banking sector news can still impact market sentiments. Regulators may continue to make it difficult for banks to process crypto-related transactions, as has been the case with Signature Bank. Another thing to look out for will be the Fed's meeting on Wednesday."

The CoinDCX Research Team spoke about the outlook for other crypto tokens: “In the wake of this, more investors may currently consider Bitcoin as a safe haven asset. This could result in Bitcoin’s value continuing to rise to levels beyond $30,000 in the near future. Additionally, crypto projects with good developments like ETH, MATIC, LIDO Finance, and UNISWAP are expected to see significant traction in the coming days.”

On Tuesday, Bitcoin was trading at $27,561 as per data from CoinMarketCap.

Also Watch: Binance’s Executive Explains How To Secure Your Funds In Crypto - BT TV BusinessToday

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