Bitcoin’s (BTC) price fell sharply last week after experiencing a bearish candlestick, but attributing to the muted performance of US banks, it began bouncing upward again. BTC’s price after the First Republic Bank’s crash, spiked more than 4 percent in the last 48 hours. First Republic Bank’s stock price dropped more than 50 percent at the end of April 25 and BTC’s rise was indicative of a forthcoming and bold Bitcoin price prediction in the wake of US banking issues.
The fear of another imminent bank failure after the shocking SVB collapse and fall of Signature Bank took shape in the form of First Republic Bank’s crash.
Despite concerns of the First Republic bank staring down the barrel of liquidity, US officials had declared that the bank’s deposits were stabilizing and at no risk of experiencing the bank run that closed Silicon Valley Bank down.
Amid the current predicament in the US banking sector, the king of cryptocurrency Bitcoin’s value surged after the bank crash. The stress became highly conducive to BTC’s price which had already begun to ride high on the optimistic Q1 earnings of tech giants like Microsoft and Alphabet.
Troubles with stablecoin were proven advantageous to BTC’s rise this month when the crypto asset stretched out to a 10-month high close to $31,000.
The correlation between the rallied Bitcoin price and First Republic Bank is speculated to be strong. When concerns about US banking stability arose after First Republic announced plummeting by more than $100 billion in deposits during its Q1 earnings, Bitcoin’s price landed in green, regaining its $28,000 mark.
The global cryptocurrency market cap was hovering at $1.18 trillion, with trading volumes increasing about 11 percent to $40.59 billion.
Bitcoin Price Predictions In The Wake Of US Banking Issues
In December 2022, a renowned financial institution, Standard Chartered Bank predicted that BTC prices would drastically fall to $5,000, owing to the mishaps of the FTX collapse. But the same bank did a 180 and now has made a strong Bitcoin price prediction, climbing up to $100,000 in the next bullish cycle.
“We see the potential for BTC to reach $100,000 by the end of 2024, as we believe the much-touted ‘crypto-winter’ is over.”
An analyst at CNBC predicted that BTC’s price after First Republic Bank’s crash could regain its dominant foothold in the market to 50-60 percent after falling to 47 percent over the last couple of weeks.
Bitcoin’s biggest peer, Ethereum also rose about 2 percent, lingering below the $1,900 level. Another bank analyst stated that he was confident of the cease of the bear market, leading to higher price surges in next year’s bull market.
“The rumors surrounding BTC price after the First Republic bank crash have been driven by a demand for safe-haven amid fears of a US banking crisis, recovery in market conditions, and speculations of the end of Fed’s tightening cycle.”
Many analysts speculate that historical trends of short-term buys which were triggered last week, can indicate that Bitcoin’s price could also experience a 7 percent increase due to the US banking crisis. The narrative of Bitcoin becoming a safe refuge is gaining steam.
