90-Day High for Bitcoin (BTC), Price Exceeds US$27,000

Amid several bank collapses, the Bitcoin price exceeds US$27,000

Cryptocurrency prices are skyrocketing in the wake of the high-profile Silicon Valley Bank's collapse. Considering that, unlike stocks, cryptocurrencies are typically not backed by any tangible assets or operating cash flow of an underlying corporation, cryptocurrencies are among the riskiest potential trading. Hence, one might anticipate a decline in cryptocurrency if a lack of trust affects the markets. Conversely, the top cryptocurrency Bitcoin price increased after it was revealed that the U.S. government was insuring almost all deposits at the failing California bank and that depositors would receive their whole money back. As of writing the Bitcoin price exceeds US$27,000.

Bitcoin increased by 23% in a single week, and it recently reached its greatest levels in months, supporting the idea that it can act as a buffer against instability in the established financial system. Similar to many growth stocks, cryptocurrency is a hazardous asset that fluctuates based on changes in the direction of interest rates in the future. Trading tends to migrate into riskier assets when rates fall, but away from risky assets when rates increase. They now anticipate that the Fed's rate rises would decrease, if not come to an end entirely, from their ferocious pace of the previous year.

While some regard this as a short-term rise, it appears that a larger price action is on the horizon. As is well known, Bitcoin is approaching the halving that takes place once every four years. The next halving is planned for 2024, while the previous one took place in 2020. It is clear from looking at price trends since the start that cryptocurrency is behaving similarly before and after the halving event. The price has so reached a pivotal point beyond which it has before experienced a significant increase.

The monthly chart above depicts how the BTC price has tracked a comparable price movement since 2014. The BTC price breaks its bullish grip after each halving and plunges precipitously to indicate the cycle's bottom. The price then experiences a noticeable bounce that sparks a tremendous upswing that drives it higher to set a new record high. Every time the price has halved, this pattern has appeared, and once the price crosses above the trend line, a similar rise is anticipated. Yet, future forecasts suggest that Bitcoin will continue to gain momentum for some future period. According to projections from a cryptocurrency exchange, the price of Bitcoin could reach about $30,000 by the end of 2023.

In addition, Solana (SOL) and Ethereum (ETH) both experienced weekly gains of about 9.88% and 12%, correspondingly. The market capitalization of all cryptocurrencies is $1.16 trillion, up 0.02% from yesterday.

On a larger scale, the price of BTC has done well, rising by more than 35% in the last seven days to trade at $27,340. The cryptocurrencies do not, however, seem to have fully tapped into the strength they have built up over the last few months. It's interesting to note that compared to Bitcoin, the growth of popular cryptocurrencies has increased less recently. So, taking into account the existing circumstances, it can be predicted that the price of Bitcoin (BTC) will continue to have a significant lead and may increase until it reaches its goal. Altcoins may continue to cluster and float in an