It was on Friday when the trading price of Bitcoin experienced and downtrend along with the entire cryptocurrency industry.
It was due to the demise of the Silicon Valley Bank (SVB) that the crypto markets suffered from a major low blow. The cryptocurrencies kept experiencing major downfalls and the situation did not look well for the investors.
Bitcoin has Recovered
As the Silicon Valley Bank went down, it was feared that its contagion would continue growing fierce in the upcoming days.
It was expected that the contagion may continue and the trading prices of all the cryptocurrencies may continue losing their value.
The overall crypto market valuation also plunged below the $1 trillion level as investors kept withdrawing their funds. They kept doing this out of fear that they would lose their money to the contagion.
It seems that although Bitcoin was initially impacted by the overall pullback from the investors, it has not been fazed by the SVB crash.
The data shows that the trading price of Bitcoin has experienced significant gains in the past 24-hours. The Bitcoin data is now pointing towards a bullish run that may continue and push the asset’s price higher.
Prior to the Silicon Valley Bank’s demise, it was the Silvergate Bank that went down. It announced the liquidation of its business, which caused a major dent in the entire crypto market.
However, the moves made by the Silvergate Bank ended up saving the entire crypto industry from a major crash. Due to the liquidation, the banking sector also took a huge hit as most of the banks recorded declines in their stock prices.
Just a few days after Silvergate Bank’s announcement, it was reported that the Silicon Valley Bank has been shut down by the US Feds. They have taken full control of the bank and its stocks have stopped trading in the stock market as well.
As a result, the entire banking industry in the country has been badly hit. People from all over the country are withdrawing their funds from banking firms, fearing that it could be their bank next.
These developments have turned into a catastrophe for the entire cryptocurrency industry. People are concerned and focused on saving their savings and they are not investing much into cryptocurrencies either.
Bitcoin Price has Retained a $20K Level
Following the demise of the SVB, it was revealed by Circle that they were exposed to the particular bank. It was confirmed that the issuer of the USD Coin (USDC) had $3.3 billion worth of reserves stored at the SVB.
This resulted in an even larger downfall of the entire cryptocurrency market as the USDC ended up losing its dollar peg, moving down to 87 cents. The USDC later recovered to 94 where it currently resides.
Although the USDC has recovered from its lowest level it is still finding it difficult to find its dollar peg.
Despite the downtrend, the trading price of Bitcoin has continued to recover. In the Saturday trading session, the trading price of Bitcoin moved above the $20k mark.
So far, the year 2023 has proven to be very supportive of Bitcoin. Although the token did experience some declines, most of its journey has been on the bullish track.
In the same year, Bitcoin has managed to make it past not just the $20k barrier but also the $25k barrier. The asset had not hit this level for several months and moving over the particular level is quite promising for the investors.
For now, $25k is the psychological barrier that may take time before it is breached by the bulls. Bitcoin did manage to get past the particular level but failed to sustain the pressure coming from the bears over that level.
Many analysts had predicted that Bitcoin may not be able to recover from the latest decline but it did. This gives strong hope to the investors that they can join the rally in the future and push BTC’s price higher.