Bitcoin Explosion! BTC Sets Record High of $28K As Global Banking Crisis Looms — Could Bitcoin Reach $1 Million in 90 Days?

The recent surge in the price of Bitcoin (BTC) has created a global buzz, propelling the leading cryptocurrency to a record high of $28,000. The 16% boost in value in the past 7-days marks yet another incredible milestone for Bitcoin, as the currency surges against the U.S. dollar with a 37% increase and a capitalization of $194 billion in 2023.

This rally has come alongside a global banking crisis, which could trigger the collapse of the US dollar and a potential hyperinflation scenario resulting in a $1 million Bitcoin price within less than 90 days, according to former Coinbase chief technology officer Balaji Srinivasan. Srinivasan has even made a prediction of an impending banking crisis worth $2 million on Twitter, betting on the U.S. economy’s future and how it will affect Bitcoin’s value.

Europe’s Credit Suisse bank was also acquired by UBS Group for nearly $2 billion as part of emergency plans to keep the Swiss financial system stable. Risks of another banking collapse have sparked renewed interest in risk-on assets like Bitcoin from investors seeking a hedge against inflation.

The CME FedWatch tool shows that traders have put an 84.1% chance that the Fed will raise rates by 25 bps, while the rest predict that the Fed could also maintain the current rate; this move could spark a further surge of increased investor activity and further positioning into alternative assets like Bitcoin.

In J.P. Morgan, Goldman Sachs, and other major lenders have agreed to inject $30 billion to save U.S.-based First Republic Bank from insolvency, promoting risk-on sentiments and increasing positive sentiment around Bitcoin.

The European Central Bank (ECB) is also implementing its own version of quantitative easing in response to Silicon Valley Bank, showing a “QE light” approach. Nate Batchelor, a Managing Partner at Biyond Trader, said:

“Bitcoin is reacting to the increase in the Fed’s balance sheet and the form of ‘quantitative easing (QE) light’ taken in response to Silicon Valley Bank. Technically Bitcoin is wildly bullish above $25,000 and looks to be targeting $28,000 at a minimum.”

Bitcoin’s latest surge in price comes at a time where market expectations are on the rise with an overall 4% rise in the market capitalization of all cryptocurrencies reaching $1.17 trillion and a 63% reduction from its all-time-high of $69,044 in November 2021.

Galaxy Digital Holding’s CEO Mike Novogratz even believes that there’s a chance BTC could hit $30,000 by the end of March. However, not everyone is so optimistic about BTC’s performance for the rest of the year. (Ultram) Economist Lyn Alden made predictions about the “considerable danger” BTC might face in the second half of 2023. Regardless, it’ll be a roller coaster of a year for Bitcoin as it continues to be propelled by a global banking crisis and skyrocketing investor demand.

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Rina Giannino
Journalist venturing into blockchain, Rina has been a follower of the technology since 2019 and finally taken the plunge with a career as a journalist in the industry.