Bitcoin is fluctuating with news on US banks

in bitcoin •  2 years ago 

The bitcoin price isn't moving randomly. Instead it's moving around based on news of the US banking sector.

It surged from $16,600 to $30,000 after the FDIC closed down Silicon Valley Bank and Signature Bank.

The two weeks ago, US banks started reporting first quarter earnings. The Wells Fargos and JP Morgans appeared to be doing fine - and bitcoin dipped to $27,000 as everyone assured each other that the crisis was over.

Then First Republic reported that they'd lost $100 billion in deposits, and bitcoin headed back to $30,000.

My prediction: if there is no news about banks, and no new failures, bitcoin will trade sideways in the next three months.

Second quarter earnings will be reported in July, and that will be the next catalyst for bitcoin price moves up or down, depending on whether the banks are struggling or not.

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