Bitcoin’s price is experiencing a strong rebound, heading toward $30,000 on April 26 with a 6.5% increase compared to its local lows.
The surge appears to be fueled by renewed concerns over the stability of US banks, particularly First Republic Bank, which reported a significant drop in deposits and a 50% plunge in its share price. This ongoing banking crisis has reminded investors of the persistent issues that have persisted since March, with crypto analysts predicting further developments.
When this bank bites the dust, probably later this week, we will be closer to the mrkt realising the entire US banking deposit base is de-facto gteed by the USG.
Massively Inflationary, that is why $XAU and $BTC are rising on news that FRC is a dead bank walking. https://t.co/LjSgjT5AJt
— Arthur Hayes (@CryptoHayes) April 26, 2023
Market analysts have observed a heavily shorted Bitcoin, with traders considering short opportunities near the $29,000 mark. Trading suite Decentrader warned that the market’s lack of trust in the uptrend’s durability is evident in the increasing open interest and dropping funding rate.
Currently out of the Bitcoin trade, so am looking for another setup to reposition
I am looking for us to tap that high and close back below (Deviate) .. This would b a solid trigger for a short entry pic.twitter.com/my4nDM4i7c
— Crypto Tony (@CryptoTony__) April 26, 2023
Despite the skepticism, some investors, like trader Jelle, remain optimistic, expecting minor dips before the price continues to rise, targeting $30,000.
A strong bounce from the lows as expected, my #Bitcoin longs are printing.
Expecting a minor dip into the area we just broke, before continuing higher.
The 4h candles may look scary, but I'm not worried.
30k remains the target for this trade. pic.twitter.com/Bl1Px0GKvW
— Jelle (@CryptoJelleNL) April 26, 2023
Argentina’s inflation crisis
Meanwhile, Argentina is grappling with an unprecedented inflation crisis, which has driven the value of its currency, the Argentine peso (ARS), to an all-time low against Bitcoin. With inflation rates soaring past 100%, Argentines are increasingly turning to Bitcoin and altcoin markets as alternative stores of value. Restrictions on USD purchases have also pushed many Argentines towards cryptocurrencies.
The rapid inflation in Argentina has been attributed to factors such as dwindling central bank reserves, which some experts believe may have halved since 2019, and the government’s monetary policy.
As public discontent grows, citizens have taken to the streets in protest, blaming the government for the peso’s decline. Some protesters even burned an effigy of the International Monetary Fund (IMF) during a recent march.
https://twitter.com/KawsachunNews/status/1648105805634232323?
With presidential elections set to take place in October, the Argentine population is increasingly moving away from the devalued peso, fueling a surge in demand for Bitcoin.
Some local Bitcoin vendors are reportedly charging sky-high prices for fiat-to-crypto purchases due to the increased demand, charging high prices of up to $61,000 for a single BTC.
