The last week has been one of the worst days for the crypto market. This ironically was caused by the silicon valley collapse that pushed bitcoin briefly below the 20k mark. However, this has to be reversed in the last few hours, bitcoin looking to be headed for a higher seasonal high with momentum growing by the minute. At the time of press, BTC is priced at $22,705 and skyrocketing really fast.
The last time Bitcoin showed similar movement was about a month ago when the asset rallied to the current 3 months high of just above 25k. At the current 25k seems achievable in the next week without breaking a sweat.
Why the certain surge?
Before all the disruption by the SVB saga, BTC looked to be doing very well. In fact, the coin seemed to have found a new resistance point at around 23k. This all changed after the SVB came to light. SVB was known for investing in startups and mostly crypto projects. Being considered to be in the top 20 banks in the US definitely carried a great effect on the greater population. Even though having about $40B USDC in reserve was critical for the stablecoin, somehow it did not cause the collapse of the stablecoin.
The price surge was just a reaction by the crypto market to regain control back to the direction it was headed before all this. The price surge was further fueled by Key players such as Brad Garlinghouse, Ripple CEO assuring the ability to handle the crisis hours ago.
Ripple had some exposure to SVB – it was a banking partner, and held some of our cash balance. Fortunately, we expect NO disruption to our day-to-day business, and already held a majority of our USD w/ a broader network of bank partners.
He said this through his official Twitter handle. This was followed by very deep sentiments on the matter.