The leading crypto Bitcoin surged to $27K on Friday, extending its 2023 bull run amid intensified talks of a $100K price level.
Bitcoin (BTC) has extended its recent bullish momentum, recently reaching $27K for the first time since June of last year. On Friday, the dominant digital currency rose to $27,028, marking a 6.5% gain in 24 hours. This latest 6.5% price increase also saw BTC’s market cap rise in the same period to $549,070,761,254.
However, Bitcoin has sustained a marginal retracement since the early European session and is changing hands at just over $26K. Furthermore, despite its initial price increase, the leading cryptocurrency’s trading volume saw a 6.80% reduction over the same period.
Bitcoin’s price of $27K today comes amid concerted efforts to prop up the US banking sector following the collapse of Silicon Valley Bank. In addition, the currency rose to bolster investor confidence in the face of the Federal Reserve’s ongoing deliberations on interest rate hikes.
Noelle Acheson, Newsletter Writer “Crypto Is Macro Now” explained:
“Any sign of interest rate cuts should push funds into riskier assets, which is likely to be enough to attract more institutional funds to the cryptocurrency market, regardless of whether macro traders understand or believe in the investment thesis of Bitcoin in the long run”.
$27K Bitcoin Development Driven by High-Risk Status
Bitcoin’s dominance stems from the fact that traditional investors view the popular token as a high-risk asset due to its volatility. This trend appeals more to money managers during easing financial conditions rather than tightening.
In addition to the perceived strong security, BTC’s dominance can also be attributed to the coin’s large user base. In addition, the leading digital currency also boasts high liquidity, continuous innovation, and outstanding brand recognition.
According to Christopher Bendiksen, head of Bitcoin research at CoinShares, Bitcoin does not rely on certain banks for users to redeem funds. This fact compares favorably with other US dollar-pegged digital currencies such as stablecoins. On the growing acceptance of Bitcoin among traditional investors as a valid alternative in light of the ongoing banking slump, Bendiksen observed:
“Now, for the first time, we are really hearing from customers that they perceive Bitcoin as a safe haven. It’s been a meme for a long time among bitcoiners, and I don’t know if the professional crowd has ever taken it seriously.”
Bitcoin’s network effect poses a barrier to entry for new digital currencies, and its decentralized blockchain technology inspires confidence in security. The world’s largest crypto by market capitalization is up roughly 55% in 2023 after suffering a massive crash last year.
$100K Price Prediction
With its latest price breakthrough, BTC is already inspiring varying levels of optimism among investors, analysts, and market watchers. Prominent among these are revived talks that the cryptocurrency could eventually reach $100K. For example, Capriole CEO Charles Edwards recently argued that Bitcoin is in a “hit-and-run reversal.” In Edwards’ view, this means there is a substantial upside to crypto. He also believes the pattern could be a ‘textbook perfect’ price move for BTC on its way to $100K.
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Tolu is a Lagos-based blockchain and cryptocurrency enthusiast. He likes to demystify the crypto stories down to the basics so that anyone anywhere can understand them without too much prior knowledge. When he’s not up to his neck in crypto-stories, Tolu likes music, loves to sing, and is an avid movie buff.
