• Bitcoin surged past the $28,000 per unit mark, the highest it’s been since June of 2022.
• The banking sector is burning up as of late and this situation is causing BTC to surge.
• Banks such as Silvergate, Signature, Silicon Valley Bank and Credit Suisse have either gone under or announced plans to liquidate which has had a positive effect on bitcoin’s value.
Bitcoin Surges Past $28K
Bitcoin has moved beyond the $28,000 per unit mark, the highest it’s been since June of 2022. This surge in value comes after a series of heavy blows and wounds that bitcoin experienced in 2018 and 2019. BTC rose to its then all-time high of nearly $20K per unit in November 2021 but by the end of 2018, it had fallen into the mid-$3,000 range. In 2019 however, bitcoin began to pick up momentum eventually ending the year about 50 percent higher than where it ended 2018.
The Banking Crisis
The banking sector is burning up as of late with three major financial institutions (Silvergate, Signature and Silicon Valley Bank) having gone under or announced plans to fully liquidate. Credit Suisse was next on the list but this company was later bought out by UBS allowing for a few more years onto its life. This appears to have worked well for bitcoin which has shot up by more than $4,000 over 24 hours due to these events occurring within the banking sector.
What Ilan Solot Has To Say
Ilan Solot – co-head of digital assets at Marex – commented: “Bitcoin is correlated with liquidity conditions and real rates… Real rates have declined; liquidity conditions have expanded; and it looks as if we’re entering a new regime.“ This statement further confirms that changes within the banking industry can indeed affect bitcoin’s rise or fall in price on the market making these events something we should pay close attention too if we are interested in Bitcoin investments.
A Look Back At The Years
2018 was considered one of the worst years for Bitcoin as it incurred heavy losses falling from its then all-time high of nearly $20K per unit down into mid-$3K range by year end .In 2019 however things improved significantly with BTC ending around 50% higher than it ended 2018 at around mid-$7K range . In 2021 though things changed again when BTC rose to its new all-time high of about $68K but fell back into mid-$16K range just a year later during 2022 which was considered far worse than 2018 losing overall 2 trillion dollars in valuation during 11 – 12 months time period.
The news lately seems crazy but perhaps things are finally back on track giving those who lost everything during last year’s bear market a chance at earning their money (and respect) back again through investing in bitcoin with careful consideration towards factors such as liquidity conditions ,real rates etc which now seem to be going back into regular regime due largely thanks to recent events happening within banking sectors worldwide creating an opportunity for many investors all over world .