March 23, 2023
By Murtuza Merchant
As global banks face turmoil, Bitcoin has been experiencing an astonishing rally, and its proponents are already looking ahead to the coin’s next significant milestone of $30,000.
Since March 8, when problems first surfaced around Silicon Valley Bank, which has since collapsed and sparked chaos among other lenders, the leading digital currency has surged by roughly 25%.
It has surged more than 20% since the beginning of March, reaching around $28,000, its highest level since June of last year when a series of digital asset implosions shook the industry and put downward pressure on prices.
In June, it last traded at $30,000 during the meltdown of now-defunct lender Celsius.
Experts have weighed in on the future of Bitcoin, and while there are varying opinions on the timing and likelihood of a new high, there are several factors that could influence its trajectory.
Eric Chen, CEO and co-founder of Injective Labs, believes that the regulatory environment and government policy will have a major effect on the crypto markets.
He also points out that cryptocurrencies are not immune to broader economic risks, so monitoring the larger financial system will be crucial.
Max Shilo, a digital currency analyst at CoinLoan, sees the current market as being mainly driven by fundamentals, with investors seeking a hedge against inflation and bank runs.
He notes that $30,000 will be a big test for Bitcoin, with many investors wanting to take profits at this level.
The new narrative that the Federal Reserve is under pressure to provide more liquidity is also a key driver of the current bull run, Shilo added.
Ruadhan O., a Ph.D. in theoretical physics specializing in automated strategies for trading equities, compared the current bull run to those seen in late 2015 and mid-2019.
He believes that the next new high is likely to occur at the end of 2024 or the start of 2025, as the market adjusts to the next cut in supply.
However, he also noted that Bitcoin appears to be playing the role of a safe-haven asset in response to the current banking crisis, and a rally to $44,000 or higher is possible.
Gabriella Kusz, CEO of Global Digital Asset and Cryptocurrency Association, believes that the recent banking crisis and the likelihood of bailouts will be key factors in the next bull run.
She noted that Bitcoin was borne from the aftermath of the 2008 financial crisis and its round of bailouts and that the theory behind Bitcoin is being reasserted through the recent actions by the government and the banking sector.
Dmitry Machikhin, Founder and CEO at BitOK, acknowledges that Bitcoin is still a highly volatile asset and that it has experienced significant price corrections in the past.
However, he believes that Bitcoin’s price will continue to rise for several reasons, including the fact that shorts are strictly forbidden above $25200, the increase in spot buyers, and the recent strong growth of Bitcoin.
About the author
Murtuza Merchant is a senior journalist and an avid follower of blockchain and cryptocurrencies.
