bitcoin (BTC) marked $30,000 at the Wall Street open on April 26, as the bulls gained more momentum due to the US banking problems.
Hayes: "Uncertainty" driving the price of BTC, gold
Data of Cointelegraph Pro Markets and TradingView followed as it briefly recaptured the psychological line in the sand, capping gains of 11% off its April 24 local lows.
The couple followed respond positively to the next rapidly evolving chapter of the US banking crisis. This centered on First Republic Bank, which revealed a $100 billion reduction in deposits this week.
The US government was reportedly not interested in intervening that day, according to a source quoted by CNBC, as shares in the bank, FRC, opened another 22% before pausing on volatility. Thus, the weekly losses in the share price amounted to more than 50%.
answeringArthur Hayes, former CEO of crypto derivatives exchange BitMEX, smelled blood.
If the government refused to bail out First Republic, he argued, it could set off a dangerous chain reaction of insolvencies.
“But if FRC fails, and depositors take an L. Then all the other banks with the same problems will go under soon after. The entire US banking system suffers from the same problems,” part of a Twitter thread read.
Hayes concluded that both Bitcoin and gold were benefiting primarily from the lack of clarity and associated cold feet surrounding the fate of the bank and the next steps by lawmakers.
“This uncertainty is what is driving external money like gold and BTC,” he stated.
$40,000 Bitcoin Price Incoming?
Bitcoin traders and analysts therefore remained confident that the overall uptrend would continue, regardless of any temporary consolidation moves around the $30,000 mark.
Related: Bitcoin Touches $30K As BTC Bulls Are Well Positioned For $3.2 Billion Weekly Options Expiration
“The deal breaker was $27,800, not $28,800,” mused Michaël van de Poppe, founder and CEO of trading company Eight.
"We're ready for $40,000."
Daan Crypto Trades made comparisons between the current bounce and the previous breakdown to monthly lows.
“Sweeping the highs in quick succession. Similar price action that we saw on the way down where we had about a dozen of these before price crashed properly,” he said. summarized.
Others, including the popular trader jelly and Byzantine General, forecast a return to BTC price action in the $30,000 range.
“O I was properly cleaned here. About $500 million erased," the latter noted on the reaction of the derivatives markets to the latest gains.
"So that probably also means that this mini rally is about to end, the next consolidation."
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
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