Bitcoin (BTC) broke through $24,000 for the first time in months, gaining more than 16% in the past 24 hours. This surge resulted in the asset growth record being smashed last month.
Bitcoin (BTC) value image from Coin Market Cap.
The past few hours have been very favorable for the value of Bitcoin (BTC), which has surpassed $24,000 to close at a peak of $24,478, its highest level since mid-February last year. The asset is up nearly 16%, setting a new one-day record last month. Currently, Bitcoin (BTC) is correcting slightly in value and trading around $24,360.
The reason for the asset’s current sudden rise is uncertain. Generally speaking, the value of Crypto assets is still linked to the value of traditional financial markets, which means falling or rising at the same time as traditional stock markets. But this time is relatively different because of the stark contrast to the state of the banking ecosystem after learning of the collapse of Silicon Valley banks this weekend.
Bank fragility is an increasingly real fact. Sean Farrell, Head of Digital Asset Strategy at FundStrat, had this to say about Bitcoin and the current state of the banking industry.
“Bitcoin is leading the market because there is a group of investors who recognize the vulnerability of central banks and the solution BTC offers. […] Cryptocurrencies are responding as they should to expected changes in liquidity conditions. “
On the other hand, traders and merchants saw around $300 million in liquidations on Monday. Of this, approximately $140 million was liquidated in Bitcoin (BTC), while the remaining $160 million was a short position.
The rise in the value of Bitcoin (BTC) also coincides with the latest demands from U.S. President Joe Biden to Congress and banking regulators. Following the collapse of Silicon Valley Bank and Signature Bank (SBNY), Biden will demand stronger rules and measures that financial institutions must follow.
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Source of information: Compiled from BITCOINES by 0x Information, the copyright belongs to the author Manuel Torrejon, and shall not be reproduced without permission