Major crypto bitcoin climbed as high as $27K on Friday, extending its 2023 bull run amid intense talks of the $100K price level.
bitcoin (B T c) has extended its recent bullish momentum, recently reaching $27K for the first time since June last year. On Friday, the leading digital currency climbed to $27,028, up 6.5% in 24 hours. This latest 6.5% price increase also saw the market cap of BTC rise to $549,070,761,254 over the same period.
However, since the opening European session, bitcoin has maintained a minor retracement and is changing hands above $26K. Furthermore, the major crypto experienced a 6.80% decline in its trading volume within the same period, despite its initial price jump.
Bitcoin surged to $27K today amid concerted efforts to boost the US banking sector following the collapse of Silicon Valley Bank. Furthermore, the ongoing Federal Reserve deliberations regarding an interest rate hike pushed the coin higher to strengthen investor sentiment.
“Crypto is Macro Now” newsletter author Noel Acheson Explained,
“Any sign of an interest rate cut should push money into riskier assets, which is likely to be enough to bring more institutional money into the crypto market, regardless of whether macro traders understand the long-term bitcoin investment thesis or Believe it.”
Bitcoin Growth To $27K Driven By High-Risk Position
Bitcoin’s dominance stems from the fact that traditional investors view the popular coin as a high-risk asset due to its volatility. This trend appeals more to money managers when it comes to easing financial conditions rather than tightening them.
Apart from the perceived strong security, the dominance of BTC is also due to the large user base of the coin. Furthermore, the leading digital currency also boasts of high liquidity, constant innovation, and prominent brand recognition.
According to Christopher Bendiksen, head of bitcoin research at CoinShares, bitcoin does not rely on certain banks to allow users to redeem funds. This fact pales in comparison to many other digital currencies pegged to the US dollar, such as stablecoins. On the growing acceptance of bitcoin among traditional investors as a valid alternative in light of the ongoing banking blues, Bendiksen observed:
“Now we’re actually hearing from customers for the first time that they see bitcoin as a safe haven. It’s been a meme among bitcoiners for a long time, and I don’t know that it’s ever been taken seriously by the professional crowd. Has gone.
Bitcoin’s network effect hinders the entry of new digital currencies, and its decentralized blockchain technology inspires security trust. The world’s largest crypto by market cap is set to gain nearly 55% in 2023 after a massive decline last year.
$100K Price Prediction
With its latest price surge, BTC is already inspiring varying levels of staggered optimism among investors, analysts, and market observers. Chief among these is reviving talks that crypto can Finally hit $100K. For example, Charles Edwards, CEO of Capriol, recently argued that bitcoin is on a “Hit and Run Reversed.” In Edwards’ opinion, this means there is substantial upside for crypto. He also believes that this pattern could be a ‘textbook correct’ price move for BTC on its way to $100K.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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