Bitcoin (BTC) is about to hit the $30,000 mark, but regional banks in the United States are facing major fear and anxiety. Investors are concerned about the possibility of contagion following the recent troubles of California-based lender PacWest.
The bank’s shares have plummeted as much as 60% overnight, reassuring investors and confirming that it is in talks with potential partners and investors about a deal as reported by The Telegraph.
Despite insisting it hasn’t experienced any unusual deposit flows, shares of regional banks are down more than 5% today, with none of the industry’s 349 banks posting profits.
Regional banks take a hit, 130 stocks down more than 5%
The fear surrounding regional banks has undoubtedly been fueled by the recent bankruptcy and sale of First Republic Bank to JPMorgan Chase. This high-profile event drew attention to the potential risks and challenges faced by smaller banks, particularly in the current economic climate.
Despite broader concerns in the financial sector, Bitcoin has climbed above the $29,000 level, up 1.7% over the past 24 hours, possibly fueled by ongoing concerns surrounding US banks.
This suggests that there may be investors turning to alternative assets as a potential hedge against the risks and uncertainties in traditional financial markets, which have shown no signs of easing in the near term.
Further, according to according to CryptoCon, a Bitcoin market analyst, the right BTC bull market is here. This is based on the mid-line crossover of the 3 Week Keltner Channels, a technical indicator that measures the volatility and trend in Bitcoin. When BTC crosses the midline, currently priced at $26,500, it is a strong signal that a bull market has begun.
Furthermore, CryptoCon notes that historically Bitcoin has not returned below the centerline after crossing, supporting the argument that a bull market is underway. According to the analyst, this was true, as the crossover has consistently produced months of bull market activity.
Bitcoin rises as bank failures increase
Daan Crypto Trades, a cryptocurrency market analyst, has analysed Bitcoin’s dominance and potential impact on the broader cryptocurrency market. According to the analyst, Bitcoin dominance, which measures the percentage of the total cryptocurrency market cap that consists of Bitcoin, is currently trading at its highest level in the 48-49% range.
Daan suggests that if Bitcoin can break this range and reach new local highs, it could move to 52% or higher. This likely leads to a continuation of the ongoing trend of Bitcoin dominance, which has increased in recent months.
However, the analyst notes that if Bitcoin remains in the $27-30K range, it could lead to a recovery of ALT/BTC pairs as Bitcoin’s dominance would wane. This would suggest that altcoins, or alternative cryptocurrencies to Bitcoin, could outperform Bitcoin in the near term.
At the time of writing, the top cryptocurrency on the market is trading at $29,000. There has been a total liquidation of $100 million in short positions in the last 24 hours. The question is whether Bitcoin will continue its uptrend or experience a healthy pullback to fill liquidity below its crucial resistance levels.
Featured image from iStock, chart from TradingView.com
