• Bitcoin’s price soared by 30% this week, marking a nine month high of $26K.
• This surge comes after the US government’s announcement of a $300B bank bailout plan.
• Market sentiment has shifted away from fear, with capitalization increasing by $165 billion.
Bitcoin Price Surge
Bitcoin’s price skyrocketed by 30% over the past week, reaching highs last seen in June 2022 and trading above $26K. This surge is largely attributed to the US Government’s announcement of a $300 billion bank bailout plan in response to Silicon Valley Bank going bust.
Shift in Market Sentiment
The news of a bailout has caused market sentiment to escape from the fear zone, with total capitalization increasing by an impressive $165 billion in the process.
US Government Response
The federal reserve, Treasury and FDIC have acted quickly to put together a rescue package for depositors at Silicon Valley Bank, promising that all will be made whole and refusing to call it a ‘bailout’ despite many believing that it is exactly this.
Cryptocurrency Industry Changes Rapidly
It is important to note that things change rapidly in the cryptocurrency industry and these developments demonstrate just how much can happen in seven days. The US government’s response is likely to continue having an effect on the market as well as investor confidence moving forward.
Conclusion
This week has been extremely eventful for cryptocurrency investors and traders alike, as Bitcoin’s price surged due to macroeconomic developments in the United States. With such rapid changes occurring every day, there are sure to be more exciting opportunities ahead for those looking to invest or trade cryptocurrencies as we move into 2021.