Bitcoin has surged past $27,000, hitting its highest level in nine months as investors turn to cryptocurrencies amid concerns over the banking crisis. The cryptocurrency jumped 9.77% to $27,546.06 this morning as investors sold stocks and sought out alternative assets.
The parent company of Silicon Valley Bank, SVB Financial Group, has filed for Chapter 11 bankruptcy protection, while concerns are growing over the financial condition of the First Republic Bank and Credit Suisse. These factors have exacerbated concerns over the US government’s shutdown of Silicon Valley Bank and Signature Bank.
Investors are closely watching the outcome of the upcoming US Federal Reserve meeting. The market expects the Fed to raise interest rates by 0.25% at this meeting.
Bitcoin had reached its all-time high of $69,000 in November 2021 before dropping below $20,000 in June 2022. The decline was driven by concerns over the Fed’s acceleration in raising interest rates and shrinking its balance sheet, which could decrease liquidity in the market.
Investors are turning to cryptocurrencies as alternative assets, causing bitcoin to reach new highs. The market is uncertain about the future of traditional banks, and the Fed’s upcoming decision could have significant implications for the market.