US Regional Bank Failures Trigger Bitcoin Surge, $30,000 Level In Sight
04 Mai 2023 - 9:00PM
NEWSBTC
Bitcoin (BTC) is on the verge of reaching the $30,000 milestone,
but regional banks in the United States face significant anxiety
and fear. Investors are concerned about the potential for contagion
following the recent struggles of PacWest, a California-based
lender. The bank’s shares have plummeted by as much as 60%
overnight, causing it to reassure investors and confirm that it is
in talks with potential partners and investors about a deal, as
reported by The Telegraph. Despite insisting that it has not
experienced any unusual deposit flows, regional bank stocks are
down by more than 5% today, with not one of the 349 banks in the
sector seeing gains. Related Reading: Polkadot (DOT) Under Sell
Pressure As Bears Retaliate Regional Banks Take A Hit, 130 Stocks
Down Over 5% The fears surrounding regional banks are undoubtedly
fueled by the recent failure and sale of First Republic Bank to
JPMorgan Chase. This high-profile event has highlighted the
potential risks and challenges facing smaller banks, particularly
in the current economic climate. Despite the broader concerns in
the financial sector, Bitcoin has climbed above the $29,000 level,
up by 1.7% in the last 24 hours, potentially fueled by the ongoing
concerns surrounding the US banks. This suggests that there
may be some investors who are turning to alternative assets as a
potential hedge against the risks and uncertainties in traditional
financial markets, which have shown no signs of relief for the
short term. Furthermore, according to CryptoCon, a Bitcoin
market analyst, the accurate BTC bull market is here. This is based
on the mid-line crossover of the 3 Week Keltner Channels, a
technical indicator measuring volatility and trend in Bitcoin. When
BTC crosses over the mid-line, currently priced at $26,500, it is a
strong signal that a bull market has begun. Additionally, CryptoCon
notes that historically, Bitcoin has not returned under the
mid-line after crossing, supporting the argument that a bull market
is underway. According to the analyst, this has been true, as the
crossover has consistently brought months of bull market activity.
Bitcoin On The Rise As US Bank Failures Mount Daan Crypto Trades, a
cryptocurrency market analyst, has analyzed Bitcoin’s
dominance and potential impact in the broader cryptocurrency
market. According to the analyst, Bitcoin dominance, which measures
the percentage of the total cryptocurrency market capitalization
made up of Bitcoin, is currently trading at its range highs at the
48-49% area. Daan suggests that if Bitcoin can push through this
range and make new local highs, it could move toward 52% or higher.
This likely leads to continuing the ongoing trend of Bitcoin
dominance, which has increased in recent months. However, the
analyst notes that if Bitcoin remains range-bound between $27-30K,
it could lead to a recovery in ALT/BTC pairs, seeing Bitcoin
dominance come down. This would suggest that altcoins, or
alternative cryptocurrencies to Bitcoin, could outperform Bitcoin
in the short term. Related Reading: Coinbase And Ripple CLOs Meet,
Will XRP Listing Follow? When writing, the top cryptocurrency in
the market is trading at $29,000. In the past 24 hours, there has
been a total liquidation of $100 million in short positions. The
question is whether Bitcoin will continue its upward trend or
experience a healthy pullback to fill in the liquidity below its
crucial resistance levels. Featured image from iStock, chart from
TradingView.com
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