The Bitcoin (BTC) market has gained more popularity following the collapse of three United States banks in the past few weeks. The top digital asset by market capitalization has gained over 20 percent in the last five days to trade around $24.3k during the early London trading session. As more investors lose faith in the traditional banking sector, the Bitcoin market continues to register high inflows.
According to a famous economist on Twitter ‘Balaji’, banks are failing due to the Fed’s continued hike in interest rates. Moreover, Balaji noted that banks purchased treasury bonds amid interest hikes in the past year.
As Bitcoin price trades above pre-FTX levels, investors are more confident in its recovery from last year’s logarithmic downtrend. Notably, Bitcoin price is 64 percent lower than its ATH, $69k, which was achieved in late 2021.
Bitcoin’s Price Spike: A Closer Look
Having been adopted globally by institutional investors and retail traders, Bitcoin is highly susceptible to high-impact news, particularly the consumer price index (CPI). Moreover, consumer prices account for a majority of the overall inflation impact. With the FOMC statements on federal funds rates expected on Wednesday next week, Bitcoin volatility is anticipated to spike in the coming days.
According to famous economist Michael van de Poppe, if Bitcoin fails to break through $25.2k, then $23k will be imminent. Ark Invest founder Cathy Woods has called out the Fed for centralizing the banking sector in the United States and the lagging of crucial indicators like CPI.
He also forecasts today’s CPI and the expected impact on Bitcoin.
