BTC is holding on and approaching 30k!
Hi guys…
I know I’ve been absent for two months, but life has its own way of sneaking up on you and hitting you where it hurts. Sometimes, it distracts us and forces us to stop doing what we love as it did with me. With some determination, however, we can come back stronger and I'm happy I'm back again.
Luckily for me, the crypto market also seems to be making a comeback with BTC approaching 30k (maybe it is celebrating my return, who knows?…😂). Jokes aside though, it really feels weird BTC keeps going up no matter how the global economy keeps going down. I mean it’s not too long since the epic meltdown of Silicon Valley Bank (SVB) and the whole banking crisis kicked off in the United States.
According to a report posted on the Social Science Research Network, 186 banks in the United States are at risk of going under. In other words, about 5% of all the banks in the country could be staring into the abyss. Talk about crazy!
It also seems odd that crypto would be in green when one of the biggest exchanges, Coinbase, is being officially targeted by the SEC. Speaking of which, the SEC also went further and put out an ominous warning to everyone who’s been buying cryptocurrency in general. As a rotten cherry on top, the FED's Jerome Powell insists on interest hikes despite the banking crisis and the apparent slowing down of inflation
In response to all of that, BTC and some alts go up, breaking through key levels. Something got many people daring to think the bull market is back in full swing. Well, in my humble opinion, it is too soon to tell. Yes, the recent rally is exciting, but I can't really forget what happened in May last year when everything was looking good and well, and boom the "Terra depeg" collapse occurred out of nowhere bringing the entire crypto market down the toilet. I dare not imagine the same thing happening again, but the recent "USDC depeg" made me not rule anything out!
The only reason that comes to mind as to why crypto is holding on despite the current circumstances is ironically the recent banking crisis.
I think the collapse of SVB and the threat of about 190 banks going similarly under makes more release the importance of BTC in a fractional reserve financial system. Don’t forget that Bitcoin was initially invented by “Satoshi Nakamoto” in 2009 in response to the infamous banking crisis in 2008. People need a more transparent alternative. They need to protect themselves from the fragility of the inflationary banking system, and what is more transparent than BTC?
Another interesting thing was the US government explicitly announcing that it about sold 9,800 bitcoins on March 14 and its intention to sell the rest during this year (about 50,000 bitcoins). Despite the unprecedented bearish announcement, prices were hardly affected! Most of the traditional ways of scaring people off crypto don't seem to work much these days!
Now, I'm not saying BTC couldn't go down, sure it could, but I think the recent dramatic rally suggests that the worst and the darkest days of the "bear market" are already past...
What do you guys think of the recent rally?
I'm keen to read your opinions and thoughts...