Bitcoin, which is undoubtedly the largest crypto globally by market cap, has been creating headlines recently courtesy of the crypto’s $28k barrier breakthrough. This price hike has rejuvenated the speculation surrounding the direction of the premier crypto, with numerous investors and analysts offering their insight and prediction of the coin.
Similarly, the second largest crypto, Ethereum, has also been attracting strong buying interest, given its rise in value by around 24%, thus, reaching a little over the $1,790 mark. Despite assumptions of hyperinflation, the reason behind this particular upward rally is due to the impact created by the US inflation.
$BTC price on log-log— Gert van Lagen (@GertvanLagen) March 18, 2023
10Y+ rising wedge forming between macro upper trendline (black) and macro lower trendline (RED, dashed)
🔺15.5k was the 3rd touch of the macro lower trendline (red, dashed)
+ 1st: blow-off to macro upper trendline (black)
+ 2nd: breakdown of… https://t.co/oIrGIusua7 pic.twitter.com/H3RQdKydvs
This further stipulates and affirms the downtrend of the USD, which is likely expected to push more investors towards exploring alternative currency forms as a safeguarding measure for their assets.
Therefore, Bitcoin (BTC), a decentralized digital asset free of any governmental influence, could be observed as a more stable option for investment, thus increasing its demand and eventually surging its price even further.
The United States has been experiencing hyperinflation of the dollar for many years. The root cause of this problem is the Federal Reserve’s monetary policy. The Fed has been printing money like there is no tomorrow, and this has led to a dramatic increase in the money supply. pic.twitter.com/mSGSqPZy2N— Enete💊🍄💎 (@Enete12) March 18, 2023
Additionally, the bullish prediction made by Balaji Srinivasan, the former chief tech officer of Coinbase, stating Bitcoin's $1 million value reach within the next 90 days, was recognized as a significant driving factor in the crypto’s price.
Such optimistic comments will likely motivate more investors to purchase Bitcoin, leading to a demand surge and causing Bitcoin’s price to rise even further.
Risk-On Wave In Crypto Market Amid the US Financial Crisis
The global crypto market has so far projected a bullish sentiment, and by crossing over the $1.16 trillion mark, it continues to rise. But, the recent ongoing US financial crisis, particularly the disruption within the banking industry, has prompted many investors to seek crypto as an alternative.
Balaji Srinivasan Says Hyperinflation Happening Now — Makes Million-Dollar Bets on BTC Price Exceeding $1M in 90 Days pic.twitter.com/CDUQ8uB6d8— Elvis M (@Elvismanyika) March 19, 2023
It is also worth mentioning that the bankruptcy of Silvergate, a financial service provider for cryptocurrency companies, and the government's acquisition of insolvent banks such as Signature Bank and Silicon Valley Bank have posed difficulties for banking enterprises connected to cryptocurrency.
A massive financial contraction is slowly underway in the world economy, and the bankruptcy of the 16th largest US bank (Silvergate) appears to be the first major trigger.— Marin Prvan (@theprvan) March 11, 2023
The dynamics of the coming economic collapse will take many forms. But the end result is simple... pic.twitter.com/apIHXCxpKE
As a result, the ongoing financial crisis in the United States has highlighted the usefulness of cryptocurrencies, which have emerged as a secure refuge during these crises.
Notably, investors are seeking alternative ways to protect their funds, and Bitcoin, which is decentralized and not controlled by any government, appears to meet these requirements and is considered a more reliable investment choice.
Consequently, the cryptocurrency market has been experiencing a rise, with Bitcoin and other cryptocurrencies reaching new highs that have not been seen in several months.
Bitcoin Continues to Rise; Analysts Propose Potential for Further Growth
Bitcoin has faced its share of ups and downs, especially in recent years, with the crypto market facing massive blows in terms of value. But, things appear to be finally in place for crypto amid the bank crisis in the US.
Beginning Wednesday, the value of Bitcoin has been consistently increasing, and it has currently exceeded $28k. This has led to a rise in profitable transactions on the BTC network compared to unprofitable ones.
Additionally, according to a new research report by Ankur Banerjee, an analyst and author at CryptoQuant, who used the Elliott Waves analysis approach, it has been suggested that Bitcoin has the possibility for even further value appreciation.
This optimistic prediction is expected to raise demand for Bitcoin and push up its price as investors may view it as a potentially lucrative investment opportunity. Many consider this recent uproar as a significant change within the crypto industry, as new investors may seek other cryptos as well.
Ex Coinbase CTO Makes $2 Million Bet on BTC Reaching $1 Million
Balaji Srinivasan, an American entrepreneur and investor who previously served as the Chief Technical Officer of Coinbase and co-founded Counsyl has wagered $2 million that Bitcoin will reach $1 million by June 17.
Former #Coinbase CTO makes $2M bet on #Bitcoin's performance— Crypto News Live Update (@CryptoNewsLiveU) March 19, 2023
Balaji Srinivasan has predicted #Bitcoin will reach $1 million within 90 days as a consequence of hyperinflation in the United States. pic.twitter.com/dNOFtrPBpl
Balaji Srinivasan is confident that hyperinflation in the United States will make BTC more attractive, and he has bet $2 million that Bitcoin will reach a value of $1 million. If his prediction fails to materialize, Srinivasan will be obligated to pay 1 BTC and $1 million in USDC to the individual who accepted the bet.
Nonetheless, if Bitcoin does reach the $1 million price point, Srinivasan will earn 1 BTC and $1 million in USDC, which may attract additional investors to the cryptocurrency.
Bitcoin Price as of Now
At present, Bitcoin is being traded at around $28k, with a trading volume of approximately $32.3 billion within the last 24 hours (at the time of writing). Bitcoin's value has decreased by around 0.64% in the previous 24 hours. From a technical perspective, the BTC/USD pair is trading with a positive tendency, encountering an initial resistance at the $28k level.
Should the current level experience a bullish breakout, Bitcoin's value may surge toward the $29k or $30,700 mark. At the same time, support levels remain stable, around $26,600 and $25,200.
With the ongoing anxiety surrounding regional banks in the United States, which has led to a decline in their valuations along with recent events such as the closure of Silvergate bank and the subsequent takeover of Silicon Valley Bank and Signature Bank by regulators, there is considerable potential for big cryptos like Bitcoin to reach a significant mark.