• Bitcoin price gained more than 25 percent last week breaking out of the technical and psychological resistance level of $25k.
• The surge in Bitcoin price is attributed to the meltdown of the global banking sector, rising inflation, and comments from Larry Fink and UBS Chairman Colm Kelleher.
• Axel P. Lehmann, Chairman of Credit Suisse noted that the UBS merger will provide a durable outcome while Colm Kelleher said it would help advance the company’s agenda and save further catastrophic losses.
Bitcoin Hits 9-Month High
Bitcoin closed last week with a solid bullish thesis, hitting a nine-month high of about $28,440. Optimism for a potential $30k before $10k in the near term has been rejuvenated as cryptocurrency cash flow is expected to spike in the coming weeks. Ethereum (ETH) and BNB have also spiked more than 11 and 15 percent respectively over the past week. According to Rekt Capital, Bitcoin’s bullish sentiment will remain strong if its macro downtrend breakout at around $25k holds in monthly closeouts.
Drivers for Bullish Sentiment
The surge in Bitcoin comes amidst turmoil amongst global banking sectors as well as increasing inflationary pressures worldwide. In light of Credit Suisse being saved through government intervention, investors are now turning to Bitcoin as a potential safe haven asset due to its capabilities in fighting inflationary forces. Notable figures such as Larry Fink (@BlackRock) have commented on this trend saying that tokenization of real world assets is future payments technology while UBS Chairman Colm Kelleher has stated that their acquisition of Credit Suisse is an emergency rescue move which will preserve value left within their business while limiting downside exposure risk.
Analysis on Impact
The rise in Bitcoin prices reflects an optimism among investors who think that crypto can beat traditional markets when it comes to battling inflationary forces long-term by providing an alternative store of value for individuals or institutions seeking safety from market volatility or economic downturns. As such, it appears that increasingly more people are turning towards digital assets for their financial security needs rather than traditional banking solutions due to Bitcoin’s ability to protect against macroeconomic instability or other unforeseen circumstances like pandemics or natural disasters which could lead to severe economic repercussions around the globe.
It seems clear that although there are still many uncertainties regarding cryptocurrencies, investment into bitcoin continues steadily due to its advantages over traditional markets when it comes beating inflationary forces long term by providing an alternative store of value for individuals or institutions seeking safety from market volatility or economic downturns.. As such, with increased institutional interest into cryptocurrencies alongside individual investors looking for higher returns than what traditional banks can offer – it appears that digital assets still remain very attractive investments despite any short term hiccups seen recently within crypto markets overall.
With current events driving heightened demand for digital assets – especially bitcoin – we can expect prices within crypto markets continue climbing upwards with even greater speed should macroeconomic conditions deteriorate further down the line causing more people seek refuge from traditional investments by investing into cryptocurrency instead