Bitcoin Hits $27K for First Time since June 2022 amid Stuttering Banking Sector
Leading crypto Bitcoin climbed to $27K Friday, extending its 2023 bullish run amid intensified talks of a $100K price level.
Bitcoin (BTC) has extended its recent bullish momentum, recently hitting $27K for the first time since June last year. On Friday, the dominant digital currency climbed to $27,028, marking a 6.5% increase in 24 hours. This latest 6.5% price spike also saw BTC’s market cap swell within the same period to $549,070,761,254.
However, Bitcoin has sustained marginal retracement since the early European session and is changing hands at just over $26K. Furthermore, despite its initial price surge, the leading crypto’s trading volume experienced a 6.80% drawdown within the same period.
Bitcoin hitting $27K today comes amid concerted efforts to prop up the US banking sector following Silicon Valley Bank’s collapse. Furthermore, the coin pushed higher to strengthen investor sentiment in the face of ongoing Federal Reserve deliberations regarding interest rate hikes.
“Crypto Is Macro Now” newsletter scribe Noelle Acheson explained:
“Any sign of interest-rate cuts should push funds to riskier assets, which is likely to be enough to bring more institutional funds into the crypto market, regardless of whether macro traders understand or believe in the longer-term Bitcoin investment thesis.”
Bitcoin $27K Development Spurred by High-Risk Status
Bitcoin’s dominance stems from the fact that traditional investors see the popular token as a high-risk asset due to its volatility. This trend appeals to money managers more during easing financial conditions rather than tightening.
In addition to perceived strong security, BTC’s dominance is also attributable to the coin’s large user base. Furthermore, the leading digital currency also boasts high liquidity, continuous innovation, and prominent brand recognition.
According to Christopher Bendiksen, head of Bitcoin research at CoinShares, Bitcoin does not rely on certain banks for users to redeem funds. This fact favorably compares to several other digital currencies tied to the US dollar, such as stablecoins. On Bitcoin’s growing acceptance among traditional investors as a valid alternative in light of ongoing banking blues, Bendiksen observed:
“We are now for the first time, really hearing from clients that they perceive Bitcoin as a safe haven. That’s been a meme for a long time among Bitcoiners, and I don’t know that that’s ever been taken seriously by the professional crowd.”
Bitcoin’s network effect poses a barrier to entry for new digital currencies, and its decentralized blockchain tech inspires security confidence. The world’s largest crypto by market cap has risen approximately 55% in 2023 after suffering a massive drawdown last year.
$100K Price Prediction
With its latest price advancement, BTC is already inspiring varying levels of staggered optimism among investors, analysts, and market observers. Prominent among these are revived talks that the crypto could eventually hit $100K. For instance, Capriole CEO Charles Edwards recently argued that Bitcoin is on a “bump & run reversal”. In Edwards’ opinion, this means that there is substantial upside for the crypto. He also believes that the pattern could be a ‘textbook perfect’ price move for BTC en route to $100K.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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