Bitcoin Up 9% – $42,000 Possibly Due To US Banking Crisis

Why is the Bitcoin price suddenly rising?

Today’s share price rise coincides with concerns about another major US bank collapse. The latest news shows that First Republic Bank is experiencing massive capital outflows and is working to redeem $50 to $100 billion in debt instruments as part of its “strategic options.”

When the banking crisis erupted in the US in March earlier this year, Bitcoin also showed resilience by quickly mounting a strong rally. The current BTC price surge following news of the crisis at First Republic Bank suggests that the cryptocurrency is once again acting as a safe haven for investors.

The impressive price increase of Bitcoin and other cryptocurrencies stands out amid global stock markets turning a deep red. This clearly shows that Bitcoin and crypto are breaking free from their correlation to traditional market forces.

Bitcoin price may rise to $42,000

On-chain data provider Santiment reported that Bitcoin’s social dominance remains relatively high compared to other altcoins in the market. “Typically, high social dominance for Bitcoin occurs during market euphoria or (in this case) fear. Prices can recover quickly,” added Santiment.

Popular crypto analyst Michael Van de Poppe is also positive, writing: “Bitcoin doesn’t look bad on the higher timeframes. Healthy correction, and as long as #Bitcoin remains above $25,300, we will likely continue this rally towards $42,000″.

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