In the last few days, the value of Bitcoin has skyrocketed. Except for a minor setback, it has been steadily rising since the bank crash in the United States. Several factors have contributed to Bitcoin’s meteoric rise. What are the top reasons and why is Bitcoin price going up? Let’s take a look at it in more detail.
How has the Bitcoin price moved in the last few days?
Why Is Bitcoin Price Going Up: BTC/USD Weekly chart showing the price – GoCharting
The last few days have been one of bitcoin’s most successful periods since the bear market began at the end of 2021. Following a difficult year in 2022, the price was able to rise dramatically at the start of the year. However, following the bank failure in the United States, the price of Bitcoin skyrocketed.
First, after falling below $20,000, we saw a leveling off at $22,000. Then the price rose first to $24,000 and later in a bull run above $26,000. After falling to $24,500, the price began to rise again. The resistance at $25,000 was broken again in the days that followed. As a result, the Bitcoin price has risen above $26,000 and is now above $27,000.
Why Is Bitcoin Price Going Up?
In the last few days, the value of Bitcoin has skyrocketed. We’d like to present three compelling reasons why this is so.
Loss of confidence in the banks:
The insolvencies of the Silicon Valley Bank and the Silvergate Bank triggered a small earthquake in the financial market. Due to the bank run on the Silicon Valley Bank, even the USD coin and Dai temporarily lost their stability against the US dollar. Therefore, the market crashed in the short term.
However, the Bitcoin price was able to recover very quickly. More and more people no longer trust the banks after the crash and put their money in Bitcoin, which can benefit from the uncertain situation.
High inflation in the US
Inflation in the US was particularly high in 2021 and 2022. That is why the US Federal Reserve has raised interest rates in recent months. This ensured that the Bitcoin price had lost a lot. However, this also coincided with the first year of the bear market, which intensified the fall in prices.
The Bitcoin price benefits from high inflation, but not excessive inflation. Because investors seek a long-term store of value. However, at 6% in February, inflation is not so high that the FED needs to raise interest rates again. It is more likely that interest rates should only increase slightly or even stay the same in order not to burden the banks.
Break above the resistance at $25,000
For a long time, the $25,000 level has been a strong upward resistance. As early as August 2022, the Bitcoin price was able to briefly rise above the $24,000 mark before bouncing back.
This resistance was broken for the first time a few days ago. However, the Bitcoin price fell below the mark at the time. The resistance was finally broken with the second breakthrough in the last 1 to 2 days, causing the Bitcoin price to skyrocket to $27,000.
Nobody knows where the price will end up. It’s great to see the price drop to $27,000, but will it stay there?
Those who bought when it was at its lowest in November may have already profited, but I think it’s better to just HODL until the next bull run. We haven’t reached the bull run yet because we have to wait for the block to be halved. So don’t rejoice over this kind of price increase because there will be more massive runs when we get to May-> 2024.
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