Bitcoin proves its resilience amidst the banking crisis, surging to $29,000 overnight. Experts weigh in on its strong performance and future outlook.
On May 4, Bitcoin (BTC) surged back up to $29,000 overnight, coinciding with the banking crisis in the United States that posed a threat to financial institutions. According to data from TradingView, BTC/USD experienced a sudden positive shift, reaching $29,242 during this time.
During the previous day’s Wall Street opening, the pair had dropped to daily lows as investors waited for the Federal Reserve’s interest rate decision. Concurrently, several U.S. regional bank stocks were experiencing losses, and this trend continued after the Fed announced its highly anticipated 0.25% increase.
According to reports, PacWest Bancorp (PACW), a lender, announced its plans for a buyout, which increased pressure on the regional bank industry and drove investors to seek safe-haven assets such as Bitcoin. In addition, gold reached new all-time highs as market analysts criticized the Federal Reserve’s strategy and predicted that interest rate hikes would soon come to an end.
Experts Praise Bitcoin’s Resilience
Michaël van de Poppe, founder and CEO of trading firm Eight, said: “The biggest joke is the fact that Jerome Powell says that the banking system has improved and is healthy, sound, and resilient. It’s the weakest it has ever been and another few banks have been falling apart aftermarket. This was the last hike.”
In response to Fed Chair Jerome Powell’s statements on the regional banking industry, which were made alongside the rate decision, Van de Poppe commented on the matter. In a statement preceding a subsequent press conference, Powell claimed that conditions in the sector have largely improved since early March and that the banking system in the U.S. is stable and robust.
On the other hand, Van de Poppe remarked: “Bitcoin is showing strength during a banking crisis is literally what you want and need to see. If a correction occurs due to the banks falling apart, it’s mostly due to a liquidity crunch, but Bitcoin will only become larger after.”
Regarding Bitcoin’s performance, the return to $29,000 was a positive development that countered recent bearish price movements. Material Indicators, a monitoring resource, observed changes in the Binance order book and found that the buying power of whales had gained an advantage during these news events.