Bitcoin price bounced back above $29k on Thursday after the United States Federal Reserve announced the third 25 basis point hike on Wednesday. The banking sector in the United States has been on the receiving end YTD with four banks – including Silvergate Capital, Silicon Valley Bank, Signature Bank, and First Republic Bank – going underwater. While the crisis might be far from over, the large banks including JPMorgan, and Bank of America among others have significantly benefited from large deposits.
Nevertheless, more investors have preferred self-custodial through Bitcoin among other digital assets. Thereby contributing to the recent spike in the value of the top digital assets.
“We expect to see significantly more volatility in the months ahead, especially if there are any further aftershocks in US regional banking or concerns around the state of commercial property loans,” said Tommy Honan, head of market analysis at crypto exchange Swyftx.
$25k or New ATH for Bitcoin this Year?
With macro analysts and economists convinced the global market is headed for a recession before the end of this year, the big question is how Bitcoin and the altcoin market will perform. Meanwhile, Bitcoin price has consolidated between $30k and $27k since mid-March. As more crypto traders jumped into the meme coins wagon, especially PEPE and WOJAK, Bitcoin bulls struggled to push beyond $30k.
The tug-of-war between the bulls and bears has, however, increased the uncertainty of Bitcoin’s next trend. Moreover, there is a solid likelihood of Bitcoin retesting $25k before continuing with the previous bullish outlook. On the other hand, there is a significant chance a breakout toward $33k could happen in the coming days or weeks.