- Bitcoin price jumped above the important psychological level of $30,000.
- Most altcoins like Solana, Render Token, Sui, and Chainlink were the best performers.
Cryptocurrencies were in the green on Wednesday as Bitcoin price retested the important resistance level at $30,000. This rebound, which started on Tuesday, helped to push other tokens like Solana, Render, Sui, and Chainlink prices sharply higher.
US banking crisis
Bitcoin price rose as investors reacted to the renewed banking crisis in the United States. On Tuesday, Moody’s, one of the biggest rating agencies in the US, downgraded some of the biggest regional banks. It also placed big companies like State Street, Truist, and Northern Trust in review for a downgrade.
The report came a week after several banks collapsed in the US. These banks included companies like Signature Bank, Silicon Valley Bank (SVB), and First National Bank. They collapsed mostly because of their bond portfolio.
Bitcoin tends to do well when there are worries of a banking crisis since the currency was designed to be an alternative to the US dollar.
There are other likely reasons why Bitcoin has jumped. First, technically speaking, Bitcoin struggled to move below the important support level at $28,800 since July. This is a sign that bears were afraid of shorting below that level.
Read more: How to buy Bitcoin.
Bitcoin’s Wookalich ratio
Further, the Wookalich ratio moved above the signal line, as shown below. This is one of the most popular bullish signals in the crypto market since it aims to correct the long-term inflation skewing using the dilution factor.
Meanwhile, David Rubenstein, one of the biggest players in the private equity (PE) industry vouched for Bitcoin. He argued that Bitcoin will thrive despite the ongoing crackdown in the United States because of the rising demand abroad.
https://www.youtube.com/watch?v=-ua2ZwdB4eE&pp=ygUYZGF2aWQgcnViZW5zdGVpbiBiaXRjb2lu
Finally, the fear and greed index is stuck at the neutral level while companies like PayPal have moved deeper into the industry.
Bitcoin’s recovery triggered a jump in most altcoins. Aptos price jumped by over 15% after partnering with Microsoft, as I wrote here. Pepe and Shiba Inu rose sharply as demand for meme coins.
Further, Chainlinkprice jumped after integrating with Base, the new layer-2 network by Coinbase. Other top-performing tokens were Render Network, Sui, and Toncoin.
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