This week, Bitcoin’s (BTC) upward surge was the most significant event. The coin rose above $27,000 amid a banking crisis in the United States. The situation reiterated the need for users to hedge against economic instabilities using digital assets. In the mid of this crisis, the Silicon Valley Bank (SVB) saga remained in focus as fresh details emerged. Meanwhile, the United States regulatory climate came under further criticism as industry leaders highlighted the potential dangers of unfavorable legislation.
Bitcoin breaks above $27,000
Two weeks ago, bitcoin was under immense liquidation pressure, falling below the $20,000 psychological support. However, the asset recovered gradually before exploding to spot rates. Notably, the coin found tailwinds in the banking turmoil in the United States, reminding citizens of the benefits of digital assets.
The emerging uncertainty initially forced bitcoin lower two weeks ago on news that Circle, the issuer of USDC stablecoin, was exposed to the Silicon Valley Bank’s illiquidity. However, demand for legacy crypto started rising last week when it became clear that crypto assets could be leveraged to hedge a banking crisis.
At the back of this confidence, BTC recaptured the $24,000 mark mid this week, rising 9% in the 24 hours leading to Mar. 14. Industry leaders also ascribed bitcoin’s momentum to the Federal Reserve’s (Fed) likely move to slow down on interest rate hikes in response to falling inflation. Consequently, BTC rose 20% week-to-date as of Mar. 14.
Despite this favorable run, vocal bitcoin critic Peter Schiff asserted that the current bitcoin momentum is not sustainable, insisting that the Fed is a trigger. Schiff’s remarks came when BTC was trading at $24,200.
Even so, bitcoin pumped harder, rising 9% to a 9-month high of $26,373 on the same day. Bitcoin’s break above the $26,000 threshold came on the back of the latest U.S. Consumer Price Index (CPI) report, which revealed that the inflation rate decl
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Author: Wahid Pessarlay
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