Last week, Credit Suisse announced “serious flaws” in its financials, and the Saudi National Bank said that it would not commit further capital to shore up the troubled Swiss bank, further rattling global markets. Concerns over Credit Suisse’s liquidity were temporarily allayed when, late on Wednesday, the Swiss National Bank agreed to let the bank borrow up to around $54 billion. This situation has helped the Bitcoin prices to not only surge this week but it went above an important resistance level of 25K.
Overall, cryptocurrencies as a whole have had a significant gain this week, and Bitcoin followed suit on Thursday as investors examined banking system vulnerabilities in the United States and Europe.
At press time, Coin Metrics showed Bitcoin up 2.44 percent at $24,967.90 and Ethereum up 1.97 percent at $1,680.82. Investors have been cheered by the stability of cryptocurrency prices this week despite the financial crisis, and this, along with bitcoin’s lowest correlation to equities in months, is shifting the narrative to portray bitcoin as a worthwhile alternative asset. However, inflation and Federal Reserve rate rises continue to have a significant impact on Bitcoin’s price movements.
After the weekend collapse of Silicon Valley Bank and Signature Bank, bitcoin and ether saw increases of about 17% and 10% on Monday and Tuesday, respectively. The price of bitcoin surpassed $26,000, a figure not seen since June of 2017. During the run-up to the Ethereum merging, ether reached a high of $1,780, its highest price since September 12.
Bitcoin Is Surging
Bitcoin’s price is on track to record solid gains for this week and many traders believe that the rally can continue as long as the BTC price continues to trade above the 20K price mark.