In the world of cryptocurrencies, market fluctuations and price predictions are the norm, with Bitcoin often leading the way as the most talked-about digital currency.
With the recent Federal Reserve interest rate hike impacting financial markets, many are left wondering how this move will affect Bitcoin’s trajectory.
This article delves into the potential of Bitcoin reaching the $30,000 mark in the aftermath of the rate hike, exploring factors that could drive its value and the market sentiment surrounding this popular cryptocurrency.
Banking Collapse Aids Bitcoin in Regaining Positive Momentum
Since the beginning of March, US regulators have closed and sold three mid-sized US banks: Silicon Valley Bank, Signature Bank, and First Republic.
This marks the highest number of failures to affect the US since the financial crisis of 2008.
In Europe, Credit Suisse, a major global player in financial turmoil, is being forced into a rescue plan with competitor UBS. Large-scale customer withdrawals, driven by concerns over the security of their funds, contributed to the collapses.
The banks in the USA, Europe, and the UK are facing a crisis, resulting in a loss of public trust and driving more people towards cryptocurrencies due to their decentralized nature.
Moreover, US Secretary Janet Yellen stated that the US would reach its debt ceiling in June, which added further pressure on the US dollar and bolstered BTC/USD prices.
Bitcoin Shatters Daily Transaction Record Amid Growing Interest in New Network Technology
Bitcoin recently set a new record for daily transactions as interest in Ordinals, a protocol that expands the applications of blockchain, continues to grow.
According to data from BitInfoCharts, the daily volume of Bitcoin transactions surged to 682,009 on Monday after hitting a previous record of 568,300 the day before.
This was approximately 78,000 higher than the previous peak reached during the 2017 bull market.
The majority of these transactions originated from Ordinals, as it allowed users to embed data into Bitcoin’s blockchain, similar to NFT minting.
The simplicity of investing in cryptocurrency and sending payments internationally contributed to an increase in the user base, resulting in more transactions.
Bitcoin Gains Attention Ahead of Election Cycle
Bitcoin appears to have received additional support from recent comments made by US Presidential candidate Robert F. Kennedy Jr. The Democratic candidate believes the turmoil in the US banking sector is due to the “war on crypto.”
According to him, the SEC and FDIC have no legal authority to wage an additional war on crypto that is damaging the country’s major banks.
He further stated that critics who believe Bitcoin’s energy usage is bad are simply misunderstanding the concept.
The political attention that crypto and Bitcoin are receiving ahead of the upcoming election cycle is also contributing to the market’s value.
Bitcoin Price
BTC/USD is showing a positive outlook after falling to 28,250. On the 4-hour chart, Bitcoin has created a bullish engulfing pattern and is currently progressing towards the next resistance level of 29,300.
If BTC demand rises, it may potentially surpass the 29,300 level, exposing it to the subsequent resistance at 29,975.
On the other hand, BTC might find considerable support around the 50-day exponential moving average, likely providing support near the 28,650 level.
In the event of a drop below the 28,650 level, the downtrend might continue until it reaches the next support level at 27,823.
If the price declines further below 27,800, the downtrend could persist until the next support level of 27,150.
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Top 15 Cryptocurrencies to Watch in 2023
In addition to Bitcoin, the market offers a variety of promising cryptocurrencies, including emerging altcoins and pre-sale tokens with the potential for substantial returns.
Consequently, the Cryptonews Industry Talk team has compiled a list of the top 15 cryptocurrencies for 2023, each exhibiting significant growth potential in both short and long-term perspectives.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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