- Bitcoin climbs toward the $30,000 mark amidst banking turmoil.
- Prices spiked due to recent market tensions because of bank concerns.
- The latest concern in the banking realm appears to be PacWest Bancorp.
Bitcoin and major altcoins experienced a surge in price over the past 24 hours, with BTC rising by 2.2% and almost nearing the $30,000 mark on Thursday. The primary reason for the spike in price is reported to be the recent rise in tension in the market due to the concerns of banks.
PacWest Bancorp has come under scrutiny as part of wider concerns surrounding regional banks in the US, particularly following the recent collapse of three similar California-based institutions. Some supporters of cryptocurrency suggest that decreasing trust in traditional fiat currencies is contributing to the growing appeal of Bitcoin.
BTC has risen notably by over 75% year-to-date and even touched a high of $31,000 this year. The price of altcoins, including ETH and SOL, also saw a 2 to 3% spike. In addition, the price of Bitcoin has breached the $30,000 mark several times in the past few weeks.
The recent interest rate hike of 25 bps has also favored the cryptocurrency market. The Fed took a neutral approach to raising interest rates. BTC’s recent price movement occurred shortly after the Federal Reserve report speculating that another US bank failure could be imminent. Matrixport, a cryptocurrency services provider, has suggested that if Thursday’s interest rate increase marks the end of the current cycle, Bitcoin may see a 20% surge and reach $36,000.
While 2022 witnessed the downfall of prominent cryptocurrency players, 2023 is proving to be similar for banking giants. The collapse of banks is also making cryptocurrencies a favorable and trustworthy store of value.
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