The price of Bitcoin (BTC) has broken above the key resistance level of $25,000 U.S. and is now trading at its highest level in more than six months.
Bitcoin has not crossed the $25,000 U.S. level since August 2022.
At its current price of $26,650 U.S., Bitcoin is at its highest level since June 2022 when it was trading at $31,000 U.S.
The latest rally brings Bitcoin’s gain for the year to 60%, trouncing the year-to-date performance of stocks, bonds and commodities such as oil.
As recently as December, Bitcoin’s price was hovering around $16,000 U.S.
The latest rally comes as several traditional banks falter and collapse in the U.S. and Europe.
Over the past week, the U.S. government has been forced to seize Silicon Valley Bank (SIVB) and Signature Bank (SBNY). In Europe, the Swiss central bank has extended a $54 billion U.S. lifeline to troubled lender Credit Suisse (CS).
Investors and traders see the problems in the global banking sector as a positive for the future of cryptocurrencies, blockchain technologies, and digital assets.
Traders are now watching to see if Bitcoin can move above the next technical hurdle it faces at $28,000 U.S.
Bitcoin had tried and failed several times in recent weeks to break above $25,000 U.S., falling back to $20,000 U.S. as recently as March 10 of this year.
Now that Bitcoin has breached $25,000 U.S., some traders expect it to quickly break through resistance at $28,000 U.S. on its way to $30,000 U.S. per coin.
