• Bitcoin was recently affected by the insolvency of two banks involved in the crypto business.
• Following this, BTC dropped to under $24,000 and the cryptocurrency markets as a whole went into a tailspin.
• Despite this setback, bitcoin has rapidly recovered and is trading at $26,000 once again.
Bitcoin Surges Above $26K After Recent Drop
Bitcoin’s price has returned to the $26,000 level today in early morning trading hours on March 17, which is only a hair below its all-time high for the year. This comes after recent events that saw two major banks involved in the bitcoin business become insolvent. Despite this setback, bitcoin has rapidly recovered and is trading at $26,000 once again.
The SVB Saga
A shortage of money and pressure from regulatory authorities have led to Silicon Valley Bank’s and Silvergate Bank’s insolvency, two of the most prominent financial backers of bitcoin firms. As a result, bitcoin price dropped to under $24,000, and the cryptocurrency markets as a whole went into a tailspin.
Institutional Investors Show Interest
But investor interest in cryptocurrencies appears to have helped buoy Bitcoin’s price back up. In a recent CNBC interview, Mike Novogratz made similar remarks commenting that BTC was about to rally as more Investors were more likely to opt for the asset amid seeing the vulnerabilities attributed to banks. This interest has been on the rise in recent months with institutional investors showing more confidence in cryptocurrencies like Bitcoin once again.
Bitcoin Dominance Reclaims June 2022 High
The market cap of Bitcoin also increased by over 5% alongside its 24-hour chart increasing by 5.7%. This also comes as bitcoin dominance reclaimed its June 2022 high as other cryptocurrencies plunged amid SVB’s demises.
Overall it seems that despite some bumps along the way due to banking issues within crypto markets Bitcoin still remains strong enough for investors who are confident enough with their decision making abilities towards investing in cryptocurrencies such as Bitcoins rather than traditional banking options which could be seen as complacent or even risky investments when compared against digital assets such as bitcoins