After a few relatively depressing weeks of price drops, we’re finally seeing a Bitcoin rally that was supposed to happen much earlier. On Monday and Tuesday, Bitcoin enjoyed the perfect start to the week. It regained the level it saw below it fell to $18K-$19K levels, and didn’t just go back to where it was before, but even shot higher.
Briefly on Tuesday, Bitcoin shot up over $25,000 before falling to safe $24K levels. Currently hovering close to $25,000, it took the crypto market in the green once again. It’s a positive move after weeks of uncertainty, giving new and existing investors renewed hope that things are going for the better. Prices are up from the start of the year, even if inflation is rampant and the consumer price index rises.
Fall Back On Tuesday Afternoon
After a two-day rally that saw Bitcoin crush through the previously unreachable levels, it’s not well on its way to hitting $25,000. It initially broke the deadlock before a fall back on Tuesday afternoon to the $24K safety net. This happened right after all markets responded to the latest inflation figures which are over 6%.
The intraday high of $26,501 was reached early on Tuesday morning. It was the highest recorded price in nine months and fantastic news for crypto enthusiasts. More importantly, the biggest cryptocurrency by market volume posted the latest figures after the US Bureau of Labor Statistics showed that the Consumer Price Index was up 0.4%, down from the 0.5% mark gain in January. In the past 12 months including February, inflation rose by 6%. Compared to the previous 12-month period with 6.4%, this is a drop.
The modest price slowdown in price decreases means that the Fed faces less pressure to hike interest rates to keep inflation under control. It’s all positive news, of course, although no one’s sure if that’s the real case. But, the numbers so far are real, and Bitcoin is responding well. It’s even more surprising considering the demise of the SVB bank which lost billions and was liquidated on March 13.
Staring in the Face of Adversity…and Winning
The latest sharp price rise and regaining previously lost levels shows that cryptocurrencies are more resilient than we think. The world is facing an economic crisis, and Bitcoin continues to accelerate. It does that in response to high inflation, a banking crisis, and lack of predictability in the Fed’s inflation response. According to some people, the US is on the brink of a second bailout for banks, which is not good news for the fiat money sector. But, Bitcoin has responded great to all of that, going up by around 30% since SVB’s demise.
The dissolved bank’s failure will have technology repercussions that can go on for years. While crypto prices were down since the start of the year, they have surprisingly gone up to the delight of crypto fans. It’s another reminder that Bitcoin and cryptos will persevere, and that the fiat money sector will be given a run for its money.