Today, May 2, the price of Bitcoin fell below the $28,000 mark, causing it to lose value. This decline raises concerns about the sustainability of the market’s recent climb, leaving investors wondering whether this is a temporary blip or the beginning of a more severe market correction. Bitcoin’s recent 73% rebound from the 2020 crypto market crisis has stalled near $30,000, leaving traders eagerly awaiting new triggers to enhance the cryptocurrency’s value. The failures of Silicon Valley Bank (SVB) and Signature Bank have alarmed investors and depositors, who are concerned that First Republic Bank will be the next to go.
The bank’s large proportion of uninsured deposits exceeds the FDIC’s $250,000 limit, putting a considerable percentage of its funds at risk. Four-month winning streaks in Bitcoin have historically been correlated with an average gain of 260% the following year, providing a ray of optimism for investors.
