Bitcoin’s value has reached $28,000. No matter how we look at it, a very significant bull run has been triggered in recent weeks that could push the king of cryptocurrencies to make its way to all-time highs.
In particular, Bitcoin has shrugged off the “FUD” (Fear, Uncertainty, and Doubt) that emanated from the chaos in the U.S. banking scene triggered by the collapse of Silvergate Bank.
BTC has, in fact, received a major boost after authorities stepped in to help bail out banks.
In addition, analysts pointed out that Bitcoin’s latest performance received a boost from U.S. consumer price data indicating that inflation was still rising but slower than the previous month. The data could prompt the Federal Reserve to potentially slow or halt interest rate increases.
BTC also received a boost after cryptocurrency exchange Binance on March 13 announced plans to convert its $1 billion industry recovery fund into tokens like Bitcoin.
But let’s try to understand it better.
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BlackRock and Bitcoin’s value
Turning the page and heading from technical to fundamental data, however, we can better understand what is driving Bitcoin to grow so much.
BlackRock’s CEO has been open to the idea of Web3, and let’s remember that we are talking about the world’s largest hedge fund. Whose moves can we emulate if not BlackRock’s to succeed in the financial markets?
Well the financial titan is staying the course by offering its investors a way to gain exposure in the crypto space. BTC, according to the company, will only be able to increase its utility over time by increasing financial inclusion.
As if that were not enough then, tokenization of real assets is one of the most attractive opportunities of the moment!
Bitcoin and the momentum of the banking crisis, the triggering of the bull run
The triggering of BTC’s bull run was then facilitated by the banking crisis that mainly involved some U.S. giants.
We have already talked about the failure of Silvergate Bank and Signature Bank, not to mention the biggest one: Silicon Valley Bank.
However, the value of BTC has risen despite the economic turmoil. Since the beginning of the crisis on March 10, Bitcoin has risen more than 40 percent, with investors flocking to the digital asset as a store of safe-haven value.
In addition, it seems that since the beginning of 2023, BTC has performed very well: up 60 percent.
At the time of the SVB bank collapse, BTC was trading at $19,669. Despite the recent news of bank contagion with two other banks, Bitcoin came in at $28,249!
Binance bets on Bitcoin’s value
Also complicit then in the bull run is one of the crypto giants: Binance. Yeah, because after the recent turmoil regarding Binance USD (BUSD), it seems that Changpeng Zhao’s crypto exchange wants to invest its fund on Bitcoin and other famous cryptocurrencies.
According to statements, the company will convert $1 billion of Binance USD (BUSD) into bitcoin (BTC), ether (ETH), BNB coin (BNB) and other tokens to support the market.
The transaction from Binance’s sector fund to BUSD took 5 seconds and cost only $1.29, Binance CEO Changpeng Zhao said Monday in a tweet. The move likely contributed to buying pressure for the cryptocurrency king.
Cryptocurrency bubble ready to burst?
At this point everyone would bet on a BTC rise. But right now everyone is keeping an eye on $25,000, and if the crypto were to fall below this threshold, the bears could return to the market. For this reason, the fear of a bubble continues to swirl.
In the past few days crypto-whales have dumped over 200 million BTC and interest in cryptocurrency has increased dramatically.
Another negative factor suggests that cryptocurrency may be in trouble because of the number of profitable addresses. They have reached an 11-month high: 31,579,467.387.
All we can do at this point is to keep our eyes on the charts.