This is why the Bitcoin price is exploding

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Hardly anyone would have thought this was possible! In the past week, the Bitcoin price has dropped 13 percent and dropped below the psychologically important $20,000. But in the past few days, the world’s largest digital currency has risen 33 percent to $26,000.

Notable: cryptocurrencies are on the rise as banks around the world – including Credit Suisse and UBS – have suffered serious price losses after the bankruptcy of Silicon Valley Bank (SVB) in the US.

Bitcoin price has been increasingly similar to that of classical financial markets over the past two years. Now we’re going in the completely opposite direction.

sedative pill worked

The rise will likely be due to the rapid response of the US government. The Federal Reserve, the Department of the Treasury and the Federal Deposit Insurance Fund FDIC announced on Sunday that SVB depositors will have access to “all their money” from Monday. The taxpayer will not have to pay for it.

The tranquilizer pill had no impact on the crypto market. Individual stable currencies – namely stable cryptocurrencies that are considered safe investments on the scene and are tied to a currency like the dollar – briefly lost their link to the US dollar over the weekend.

The situation calmed down on Monday night. This should boost cryptocurrencies like bitcoin and ether. This was followed by good inflation data from the US on Tuesday – another boost for Bitcoin.

Where is the journey going now? In fact, the crypto winter is still going on. Historically, this has lasted two to three years and is characterized by flat prices. Experts therefore do not expect a long-term price increase before 2024.

Source :Blick