- May 7, 2023
- Posted by: [email protected]
- Category:
As the US banking crisis continues, the price of Bitcoin has risen to more than $29,000, forcing spot gold to reach new all-time highs. BTC/USD experienced a sudden change in mood, reaching $29,242 on Bitstamp after falling to daily lows on the previous day’s Wall Street opening due to market anticipation of the Federal Reserve’s decision on interest rates. Meanwhile, some US regional bank stocks were struggling, leading PacWest Bancorp to consider a buyout and boosting havens such as Bitcoin. The Fed’s 0.25% hike and Fed Chair Jerome Powell’s comments on the improved condition of the banking sector failed to convince some market commentators of the sector’s health. Some are already looking for failing regional banks and predicting the end of rate hikes altogether.
Bitcoin’s price increase was a bullish counterpoint to recent price action, with market participants hoping for further liquidity squeezes to fuel a move above the $30,000 barrier. Monitoring resource material indicators showed that whale buying power had gained the upper hand through the news events, and Checkmate, lead on-chain analyst at Glassnode, noted that Bitcoin continues to outperform gold, despite gold’s new highs being an “important signal.”
According to a tweet including Glassnode data, BTC/XAU has seen an increase since the start of 2020. The ongoing US banking crisis and the Federal Reserve’s actions have led to uncertainty in the markets, with investors seeking safe havens such as gold and Bitcoin. While some are skeptical of the banking sector’s health, others believe that Powell or Treasury Secretary Janet Yellen could bail everyone out as politics becomes more about power than rational decisions. The future of the US banking sector and the broader economy remains uncertain, and market participants will continue to monitor events for potential impacts on Bitcoin and other assets.
