The Bitcoin price is doing great so far in 2023 and the problems in the traditional financial system seem to contribute to that. Several banks in different countries are currently in trouble and Deutsche Bank seems to be the next victim. The so-called credit default swaps (insurance on bankruptcy) of the bank shoot through the roof.
Trust in Bitcoin
Bitcoin struggled earlier this week with the US Federal Reserve’s interest rate decision, which raised interest rates by 0.25 percent against market hopes despite the turmoil in the banking sector. If you ask popular trader Rekt Capital, it is important for Bitcoin to close above $ 25,000 at least this month.
At the time of writing, Bitcoin is still trading well above that, putting us well on track to continue the bullish momentum in that regard.
Credible Crypto, a popular peer of Rekt Capital, says even a drop to $23,000 would not break the bullish momentum. “A couple of weeks of volatile price action before we push through the rally would be good for us. Any correction to $ 23,000 or even $ 22,000 is not necessarily worrisome. wrote him on March 23.
New chapter in the banking crisis?
Meanwhile, the banking crisis within the traditional financial system seems to be spreading to Deutsche Bank. The Swiss Credit Suisse has already been taken over by UBS and the American banks Signature Bank and Silicon Valley Bank have collapsed.
Now that seems to be getting a follow-up with Deutsche Bank, whose credit default swaps are currently going through the roof. According to German Chancellor Olaf Scholz, nothing is wrong yet, but those are usually not the words the market listens to.
“Bank shares are dumping at the moment. Dump interest rates. Precious metals in the plus and Bitcoin remains flat for the time being,” said analyst Daan Crypto Trades in response to the problems.
So for now it remains to be seen whether Bitcoin has more “fuel in the tank” as Daan Crypto Trades puts it so beautifully in his message. In any case, there are a few exciting weeks ahead for the digital currency, in which it can prove itself as a worthy alternative to the traditional world of finance.