The cryptocurrency market is on a bull run, with the Bitcoin prices surging close to 30 percent in just seven trading sessions to cross $28,000 amid the crisis engulfing the banking sector.
Importantly, the price of the largest digital currency is expected to hit $30,000 soon.
Bitcoin price hit $28,240 on Monday for the first time since June 2022, taking the global crypto market size to $1.16 trillion.
Sector experts see the current run up in the Bitcoin prices as a sign of reemergence of the debate on the importance of DeFi (Decentralised finance) and digital assets in the wake of the collapse of some of the US banks like Silicon Valley Bank (SVB) and Signature Bank.
“The world’s largest digital asset – Bitcoin – is again gaining momentum as the collapse of US banks like SVB and Signature has rekindled the debate on the importance of DeFi and digital assets,” Shivam Thakral, CEO of BuyUcoin, India’s second-longest-running digital asset, told Arabian Business.
“Bitcoin is poised to test $30,000 very soon, but may face some resistance at that level,” Thakral said.
He said the FOMC (Federal Open Market Committee) meeting this week will be a major market-moving factor for the BTC (Bitcoin) trading direction in the coming days and weeks.
The total crypto market volume over the last 24 hours crossed $73 billion, a 4.24 percent jump from the previous day, according to CoinMarketCap, the site tracking cryptocurrency trading.
The total volume in DeFi currently at $6.27 billion accounts for 8.58 percent of the total crypto market 24-hour volume, while Bitcoin dominance is currently estimated at 46.43 percent, CoinMarketCap data showed on Tuesday.
Dhruvil Shah, SVP – technology at Liminal, the Singapore-based wallet infrastructure platform which has major operations in the UAE, said Bitcoin, being the torch bearer of decentralised finance, is currently witnessing a demand surge from retail and institutional investors amidst the banking chaos.
“BTC is being deployed as a shield against the ongoing crisis,” Shah said.
Shah also foresees Bitcoin emerging as a strong hedge against the current turmoil in the market in the near-to-mid term basis.
“As per the data from Glass Nodes, 70,000 Bitcoins have been moved to self-custody due to the chaos in the banking sector which shows that investors have concerns about the collapse of centralised banks and they are securing their digital assets by using licensed and compliant self-custody solutions,” Shah said.
He also said the strong faith shown by digital asset believers will drive the momentum in BTC to the $30,000 level, but it may face some resistance at that level.
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