Bitcoin Price Surges Amid Decreased Trust in US Banks

In a surprising turn of events, the price of Bitcoin has seen a significant increase, reflecting the ongoing pessimism among investors regarding the US banking sector. The KBW NASDAQ BANK INDEX, which tracks the performance of 24 companies in the US banking sector, has remained in the negative territory since the start of the year. Initially at 105.27 points, it has now dropped to just 86.69 points. Despite a slight rebound from its low of 71.71 points on October 23rd, the index is once again heading into negative territory as the price of Bitcoin experiences substantial growth, surging by 11% since the beginning of the week.

From a technical analysis perspective, there is a high probability that Bitcoin's price could reach $48,000, although the future dynamics remain uncertain. Currently, Bitcoin's price is approximately one-third below its all-time high of $69,045, observed on November 10, 2021.

According to research firm CryptoQuant, there is currently a negative correlation between the price of Bitcoin and the S&P 500. This suggests that Bitcoin is increasingly playing the role of digital gold for investors, rather than merely a high-risk asset. The company noted that the Bitcoin rally can be traced back to August this year when a record increase in long positions was observed for the number one cryptocurrency in the market, with a price of $29,000 per Bitcoin.