Bitcoin Gains Momentum as Banking Turmoil Continues: $30,000 Milestone in Sight

Bitcoin has seen a remarkable surge in recent days, as global banking circumstances have driven its value up by 25% since March 8. This upward trend has reignited conversations among Bitcoin enthusiasts about the digital currency's next significant milestone: reaching $30,000. 

Currently, Bitcoin is trading at around $28,000. The last time the cryptocurrency saw this close was in June of last year, when a series of digital asset implosions rocked the industry and put pressure on prices. The $30,000 threshold was last reached during the June 2022 meltdown of now-bankrupt lender Celsius.

Amid the situation surrounding Silicon Valley Bank, which has since folded and triggered a crisis among other lenders, some investors are finding comfort in the fact that Bitcoin and other digital assets are beyond the reach of regulators and outside the financial system. This isolation could insulate them from the issues affecting the broader banking sector, making them an attractive option for investors.

Market-watchers say that the ongoing banking crisis is helping Bitcoin to rally. Bitcoin trading volumes have reached their highest level since the FTX collapse at the end of last year. Additionally, Bitcoin enthusiasts claim the the digital currency could be used as a hedge against inflation due to its limited supply. 

However, its ability to serve as such a hedge has been tested over the past two years, during which cost-of-living prices have increased sharply as the coin has lost more than 50% of its value.

The $30,000 milestone remains significant for the largest token, with round numbers tending to be psychologically important for investors. Bitcoin proponents, including the founders of Three Arrows Capital, have pointed to $30,000 as a pain point for their fund. However, technical analysts warn that Bitcoin is currently trading in overbought levels, making it more difficult to cross the critical $30,000 point. 

Matt Maley, the chief market strategist at Miller Tabak + Co., believes that the move has more to do with added liquidity from the Federal Reserve than investors seeing Bitcoin as a flight-to-safety asset. As the crisis calms down, Maley predicts that Bitcoin may struggle to continue its upward trend beyond $30,000.