Join Our Telegram channel to stay up to date on breaking news coverage
Bitcoin maintained its stability at over $29,500, even after the turbulent fluctuations observed in the cryptocurrency markets. This occurred while investors evaluated issues with the latest banking sector and the sluggish economic growth data of the United States.
Over the last 24 hours, the biggest cryptocurrency in terms of market value has been trading at about $29,600, although it reached a peak close to $29,900, while currently displaying a 1.5% increase.
Bitcoin Climbs $29,400 Amidst Market Turbulence and Economic Concerns
BTC saw a slight decline during the U.S. morning trading session on Thursday after the Commerce Department released its report on the first quarter’s GDP, which showed a weak growth of 1.1% compared to the expected 2% annualized growth.
The disappointing personal consumption data compounded the issue, leading to further concerns. However, BTC was able to bounce back from this setback.
Bitcoin reached the $30,000 level for the second time this month on Wednesday. Traders have been attributing the surge in Bitcoin’s price to their anticipation that the Federal Reserve would inject capital into the financial system to cope with the ongoing banking crises in the US.
Despite trading between $26,500 and $29,400 throughout March, the cryptocurrency has seen a significant increase in its value this year. However, it is still trading at less than half of its peak value of almost $69,000 in November 2021.
The appeal of digital assets to investors has been affected by a series of trade scandals and bankruptcies that occurred last year. This has led to a degree of skepticism about the long-term potential of cryptocurrencies, and Bitcoin, in particular.
The cryptocurrency market has shown remarkable resilience and a continued uptrend in recent years, making it an attractive investment opportunity for traders looking for an alternative asset class.
Ethereum (ETH), the second-largest cryptocurrency in terms of market capitalization, performed similarly to Bitcoin, rising by almost 3% in the past 24 hours and currently trading at around $1,920.
Bitcoin Continues To Be a Safe Haven For Investors
Bob Baxley, CTO at Maverick Protocol, a permissionless derivatives protocol, believes Bitcoin’s recent performance indicates that investors have faith in the cryptocurrency’s capacity to retain its value even amidst turbulent circumstances.
“Bitcoin and other crypto assets have clearly been performing as the sort of safe haven that many had hoped this technology class would become,” he commented.
Baxley pointed out that Bitcoin, Ethereum, and other significant digital assets experienced an increase in value just hours after First Republic’s shares plummeted by nearly 50%.
He attributes this to a growing recognition among individuals and organizations of the fundamental value proposition of cryptocurrencies. He believes that Bitcoin and Ethereum are decentralized, censorship-resistant forms of value that lack counterparty risk.
Baxley also anticipates that there may be a policy change by the U.S. Federal Reserve due to the central bank’s current monetary hawkishness, which he feels “risks inflicting serious damage.”
This policy shift may further boost the growth and adoption of digital assets, providing investors with an alternative asset class that has a degree of independence from traditional financial systems.
Ambre Soubiran, CEO of crypto data provider Kaiko, stated during a Bloomberg TV interview that there has been a decline in volume, market depth, and liquidity in the cryptocurrency market. Naturally, the market is now more volatile.
Despite the positive sentiment surrounding the prices of digital assets, the market is not back to pre-2022 crisis levels in terms of volume and market depth, according to Soubiran.
Bitcoin’s recent surge has been driven by various factors, including its ability to act as an inflation hedge and its potential to address weaknesses in traditional banking systems. Paul Hickey of Bespoke observed that Bitcoin’s relative strength changes typically correspond to changes in the S&P 500, rather than predicting movements in the stock market.
Investor Optimism to Drive Bitcoin’s Recovery to $30,000
Bitcoin’s recent pullback is not uncommon in bull markets, as the cryptocurrency’s price tends to fluctuate. However, this pullback is not discouraging many investors, as analysts predict that Bitcoin could reach $100,000 by the end of next year.
Standard Chartered’s head of digital assets research, Geoff Kendrick, has stated that the pathway to $100,000 is becoming clearer and that the current stress in the traditional banking sector is conducive to Bitcoin’s outperformance. He also predicts that Bitcoin’s share of the total digital assets market cap could move into the 50-60% range in the next few months.
Kendrick also noted that Bitcoin’s rise is benefiting miners, as the associated price jump has increased the profitability of Bitcoin mining companies.
The mining group’s resurgence this year is relieving some of the pressure felt during the crypto winter of 2022 and enabling certain miners to restore their holdings at reasonably advantageous prices. Nonetheless, the question of whether Bitcoin will achieve the $100,000 mark is still up in the air, as highly ambitious predictions for Bitcoin prices are frequent.
Fairlead Strategies’ Katie Stockton is monitoring Bitcoin’s psychological $30,000 level, which will determine whether the cryptocurrency can sustain its current momentum. If it can surpass this level, Stockton believes Bitcoin could reach its key resistance at $35,900, resulting in a potential upside of 24%.
If Bitcoin is unable to maintain its upward trajectory and break above its 50-day MA of $26,356, it may experience a decline towards its technical support level of roughly $25,200, representing a decrease of around 5%. On Thursday, Bitcoin’s price rose by nearly 2% to $29,041, partially fueled by recent banking upheavals at US financial institutions, signaling that Bitcoin falling to support is less likely.
In addition to this, Bitcoin managed to reach well near the $29,900 level in the afternoon session on Thursday, although it soon retraced to the $29,500 level. This suggests that it’s too early for investors to give up on Bitcoin to cross the critical $30,000 level once again, and a positive retracement to this level could be in sight for the day.
Amidst all the factors influencing the price of the token, investor optimism will be among the key driving factors for Bitcoin to reclaim the $30,000 level on Friday.
Related Articles
Join Our Telegram channel to stay up to date on breaking news coverage
