Somewhere out there, there are ride-or-die diamond-hand crypto HODLers who believe that they’ve been vindicated by the losses in the banking industry. And on a certain level, our hypothetical HODLers might be right because bitcoin (BTC-USD) managed to clear $24,000 in this afternoon’s trading, thanks in large part to the recent plunging of multiple bank stocks. Many were halted for trading throughout the morning, and that left bitcoin looking a lot less risky in the interim.
Ethereum (ETH-USD) also gained in Monday afternoon’s trading. Crypto broker GlobalBlock analyst Marcus Sotiriou noted that this could mean great things for crypto regulation, as crypto lobbyists can now point to the nigh-collapse of the banking system and draw extremely positive comparisons to cryptocurrency. After all, crypto has not only not collapsed yet but also proved to be a perceived safe haven for some bank investors.
The next question for many is, can it hold out? Granted, with Silvervale Capital (NYSE:SI) failing and Signature Bank (NASDAQ:SBNY) sputtering, a lot of crypto’s allies are out of the fold, at least temporarily. Entities willing to offer financial provisions are decreasing. Worse, those who did provide are among the banks closing, and that could prove a serious problem for crypto as a whole. Indeed, Coinbase (NASDAQ:COIN) is under pressure right now, as Oppenheimer cut its price target on Coinbase on Sunday from $84 to $70.
Looking at the last three months of bitcoin trading, bitcoin saw a rally throughout much of January and February. Although March sent bitcoin on another leg down, another recovery is kicking in. But how long will it last? Bitcoin’s volatility is widely known, and the last three months of trading show just how volatile it really is.