Bitcoin’s big rally in the face of the recent major turbulence in banking has fostered a feel-good mood in crypto. It’s a sign, bulls say, that people are starting to believe that the asset is indeed the inflation-busting, digital-gold safe haven that it was promised to be. Unfortunately for the rest of crypto, the Bitcoin bounce isn’t necessarily a salve for all woes.
After Silicon Valley Bank collapsed earlier this month, the Bitcoin maximalists turned to social media for a victory lap. It’s precisely economic conditions like this that demonstrate Bitcoin’s original purpose, they said, a trustless system that means your money is always yours, no fractional-reserve banking required.
The token’s price went above $28,000 earlier this week, putting year-to-date gains at some 70%, and some analysts think if it tops $30,000 soon, that could mean the sector’s long down cycle may finally be nearing an end.
