Placing your bet on bitcoin seems to be a more and more beneficial act, as the famous cryptocurrency is once again exceeding expectations in a good way.
Bitcoin, the leading cryptocurrency, experienced a significant surge in its value, reaching almost $28,000 in a short period of time, according to ZyCrypto. This sudden increase represents an 8% rise in the past day and led to a broader rally in the cryptocurrency market. Other digital currencies, such as Ether, XRP, BNB, and Cardano, also saw gains of over 5%.
An unexpected turn of events
The market’s recovery is noteworthy, given the recent macroeconomic headwinds and the collapse of two banks, Silicon Valley Bank and Signature Bank. This caused a sharp drop in cryptocurrency values and heightened concerns among various regulators. Calls for de-banking crypto-related firms have intensified, further complicating the situation.
However, the intervention of the US Treasury and the FDIC provided reassurance to the market and stabilized major crypto assets. These regulatory bodies pledged to ensure that all depositors of the cash-beleaguered banks would be made whole, which helped to restore investor confidence. Overall, the recent rally in the crypto market highlights the sector’s resilience in the face of significant challenges and its ability to bounce back quickly with regulatory support.
Andreas Muller, a market analyst, explained in a tweet, as ZyCrypto quotes:
Four major banks are bankrupt. At first, it was still said that we will not save the banks. And then they were saved again, like in 2008/2009. Therefore, many people are now looking for a safe haven for their assets. And these are Bitcoin and the altcoins.
Bitcoin has experienced significant growth in recent years. In 2021, the value of Bitcoin reached an all-time high of over $64,000 USD per Bitcoin. This was a significant increase from just a few years prior when Bitcoin was valued at a few thousand dollars.