© Reuters
Investing.com – The was one of the beneficiaries of the US banking crisis, after Silicon Valley Bank (NASDAQ:), Silvergate Bank and the Signature Bank (NASDAQ:) stopped serving withdrawal requests from their customers earlier this month.
The rally in BTC was mostly driven by buying from the US as confidence in the established banking system cracked further. And yet, not six years ago, Janet Yellen, then Fed chair, declared that we would not see a financial crisis again in our lifetime.
The Bitcoin standard is getting closer
Trader University founder Matthew Kratter is convinced that the current situation inevitably leads to the world moving one step closer to a Bitcoin standard:
“What we are seeing is the ultimate flight to safety, people taking refuge in bitcoin. Where else could they take refuge when the American banking system, which is theoretically the safest banking system in the world, knows a bank run?”
As the Fed, along with other central banks, tries to get the problem under control by printing even more money, bitcoin proponents point out that BTC is limited to a maximum of 21 million units.
The dollar, which is still a global reserve currency, seems to be increasingly faltering. From the perspective of former Coinbase (NASDAQ:) CTO Balaji Srinivasan, it’s in the nature of things, as reserve currency status was never severe in marble:
“Dalio has a different definition of historical reserve currencies. He says it’s the US dollar, before that the British pound, before that the Dutch guilder. But the point is that reserve currency status is not permanent. “.
Encouraged by the rise of the dollar presses, Srinivasan indulged in a crazy gamble last week. He bet $1 million on the world’s largest cryptocurrency breaking the $1 million mark within 90 days.
According to Kratter, Srinivasan simply intends to restore its image. In the past, he was not on good terms with bitcoin at all. Kratter talks about Srinivasan being the type to show off and pump up venture capital:
“We must never forget that he was busy pumping shitcoins and insulting bitcoiners for being narrow-minded, because they are bitcoin maximalists.”
Regarding the million dollar bet, Kratter said:
“That’s quite a sensational statement. Is it possible? Yes, with bitcoin anything is possible. Is it likely? I would definitely say no.”
And as views on the motivations for betting and the usefulness of cryptocurrencies continue to diverge, James Medlock, Srinivasan’s opponent in betting, has spoken.
According to him, the stake has not yet been deposited in a trust account, as Srinivasan would have already done at the time. Medlock further discussed a second option, namely that placing would be paid to charitable organizations.
Bitcoin: technical benchmarks
Bitcoin is currently up 1.16 percent at a price of $27,820, while the weekly gain stands at 0.24 percent.
The cryptocurrency has consolidated its gains in recent days, which has helped the RSI break out of overbought conditions. The 23.6 percent Fibo retracement of $26,596 has not been touched so far and therefore a retest of the cycle high of $28,760 may occur at any time.
Above this level, the room would increase for an extension of gains towards the psychological threshold of $30,000 and the 123.6 percent Fibo expansion of $30,923.
Only if the bulls fail to defend the daily close 23.6 percent Fibo retracement support should we expect a deeper downside correction towards the 38.2 percent Fibo retracement for cent of 25,257 dollars.
By Marco Oehrl