The Bitcoin (BTC) market was affected by last week’s major bank failures in the United States. Various analysts expect this situation to lead to an upward trend in cryptocurrency prices.
In less than a week, 3 banks in the US were forced to close. The first was Silvergate Bank, whose parent company applied for voluntary liquidation. Bitcoin reacted to the downside due to its importance as a banking ally for the cryptocurrency industry. However, the cryptocurrency has since shown strength, which is what analysts are focusing on.
After Silvergate Bank, Silicon Valley Bank and Signature Bank were ordered closed by regulators due to “insolvency”. Such events represent the second and third largest bankruptcies in U.S. history after the 2008 collapse of Washington Mutual. To this end, the government has released a plan to save the unsecured deposits of its users.
Bitcoin price has experienced a rally following a string of bank failures. Source: TradingView.
Given the crisis situation, bitcoin prices are up more than 20 percent from $19,500 last week to more than $24,000, according to TradingView. Against this backdrop, trader Michael van de Poppe emphasize The market has experienced “significant bullish momentum” and an “aggressive” rally is expected if it can sustain above $21,600.
Bank failures may boost bitcoin purchases
The expert further stated that government-issued lifebuoys “should be a mass awakening” to buy Bitcoin, despite the fact that gender “Temporary Relief” He argues that with growing distrust, people can keep their money in banks and cryptocurrencies can be self-protected by their users.
He also added that the “temporary relief” from the government lifeline, coupled with potentially positive inflation data and a pause (or 25 basis points) in BTC’s upside.
Analyst Miles Deutscher, on the other hand, said the government would print money to recover money from customers of Silicon Valley Bank and Signature Bank.such a situation result “Risk assets are bullish,” he noted.
In line with this, analyst Juan Rodríguez estimates that optimism will return to risk and Bitcoin markets following the new bank rescue package.So does trader SantinoCripto emphasize An era of “very bullish on Bitcoin” and the world of cryptocurrencies and gold while “very bearish on fiat currencies” is coming.
In turn, SantinoCripto predicted that there could be bank failures in Europe and that the European Central Bank would have to rescue them like the Fed did with the aforementioned banks. He believes that this situation will drive the upward trend of BTC.
trader scott melk commented “Many tech entrepreneurs have just lived through the fear of being unbanked.” These are exactly the “people we need in the cryptocurrency space” to enter the market, he stressed.
As for technical analysis, the mustache trader he pointed out Bitcoin is reacting strongly at the 200-day moving average. And he thinks such a line could be a “fall buying opportunity.” For this reason, he believes that “the coming weeks/months will be strong” under the current circumstances.
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