March 30, 2023
Recently, U.S. regulators have continued cracking down on crypto firms resulting in intense pressure on investors.
On Wednesday the price of Bitcoin spiked sharply in response to recent regulatory crackdowns on traditional finance and tech companies. It increased from 27K to almost 29K in one day, as seen in the chart below:
Here are a few reasons why BTC might have spiked:
1. Investors are turning to Bitcoin as a hedge against increased regulation and government intervention in financial markets. Maybe it’s a sovereign currency hedge after all?
2. Recent bank failures have driven some into cryptos as a refuge.
Despite the Q1 rally, investors remain worried about a looming recession possibility as it’s unclear how cryptos will react in that scenario..
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