Bitcoin crosses $25,000; industry remains on tenterhooks over market behaviour
On March 17, 2023, Bitcoin’s price crossed the $25,000 mark. At the day of writing (19.29 pm, Indian Standard Time), CoinMarketCap, a cryptocurrency tracking website, showed that Bitcoin was trading close in the range of $26,500 as it clocked a $513 billion worth market capitalisation.
According to Rajagopal Menon, vice-president, WazirX, a cryptocurrency exchange, Bitcoin price has been rallying due to the latest United States bank bailout amplifying confidence among banks and markets. “I believe the recent news that Credit Suisse has secured a big $50 billion funding agreement has been a favourable development for Bitcoin, boosting confidence across the board,” Menon told FE Blockchain.
Insights from Investing.com, a financial markets platform, mentioned that Bitcoin has witnessed an upward trend in last couple of days despite the downfall of US banks such as the Silicon Valley Bank. Investors believe that Bitcoin price can vary based on inflation rates and Federal Reserve’s stance on interest hikes.
“Bitcoin shot past the $26,000 mark, and it managed to pull the entire crypto market higher. It stemmed out of a couple of factors. I think the collapse of SVB acted as a catalyst towards the inflow of smart money into crypto. However, with the lack of trading volumes, it will be interesting to see whether Bitcoin is able to sustain current levels,” Edul Patel, co-founder and CEO, Mudrex, a crypto-investing platform, highlighted.
Although, future predictions indicate that Bitcoin will continue to maintain its increasing momentum for days to come. As reported by CoinDCX, a cryptocurrency exchange, Bitcoin price can end Q1, CY23, at nearly $27,000, and even touch $30,000 by the end of Q2, CY23.
“I believe digital assets have done well since the beginning of the new year, and growth of the Web3.0 economy can bring over billions in revenues. We expect that cryptocurrencies and other uses of blockchain will shape the future of the Internet,” Pratik Gauri, founder and CEO, 5ire, a blockchain-based platform, concluded.
