Could Bitcoin Benefit From U.S. Banking Crisis?
Antonio Ferlito | May 04, 2023 06:20AM ET
Could Bitcoin Benefit From Banking Crises?
The price of Bitcoin is extremely volatile. On Wednesday, the market saw one of the biggest intraday price swings in the cryptocurrency market in recent times.
Bitcoin (BTC-USD) fought its way both higher and lower in different parts of the session.
Initially, traders pushed the price from $28,300 to $30,000.
I have already expressed my opinion on how risky it is to inject money to save the banking system. All it does is increase public and private debt, and this is not a good way forward.
Bitcoin, being a finite resource, has recently shown that it is recognized by the market as a safe-haven asset, both in terms of stability and appreciation in value.
Bitcoin news is promising, with an increase in the number of transactions being made.
To determine the number of active addresses, you need to examine the data.
In order to start using Bitcoin to send or receive payments, you'll need a Bitcoin address.
This is a 26-35 character long alphanumeric code that identifies your wallet and where the cryptocurrencies should be sent.
You can simply generate it from your wallet.
A Bitcoin address is a public key that is created to be shared with other users to allow them to send cryptocurrencies.
Looking at the graph of operational addresses, we note that the number of active addresses is constantly increasing, with values above the moving average.
This fact points to an increase in Bitcoin transactions – great news!
Another major event affecting Bitcoin is also on its way.
The Bitcoin halving is coming, offering a great growth prospect.
If history trends repeat, BTC price will be higher 18 to 24 months from now.
If you want to invest in Bitcoin, you can do it not only by trading futures but also by buying shares in the industry.
One of the most popular stocks is Coinbase (NASDAQ:COIN) Global, a cryptocurrency exchange, and Marathon Digital Holdings Inc, which produces Bitcoin through an extraction system called Mining.
However, Citi recently downgraded Coinbase (COIN) to Neutral due to the high level of regulatory uncertainty in the US.
The shares are down about 25% from a month ago following its legal dispute with the SEC.
The banking meltdown was excellent for Bitcoin, which benefited from a 31% rally in March.
The more financial crises occur in the future, the more Bitcoin could benefit.
I covered the topic in more detail in my last article, so check it out.
According to my studies, the price of Bitcoin over the next three months will be $30,000.
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