Bitcoin climbs to $26,000 for the first time since June

The largest crypto currency gained for a fourth day, increase as much as 7.9 per cent to $26,142

Bitcoin jumped to $26,000 for the first time since June on rising optimism that the digital-asset sector will weather the latest crisis in the US financial system.

The biggest crypto currency advanced for a fourth day, rising 7.9 per cent to $26,142. It last traded higher than $26,000 in June. It has rallied nearly 29 per cent since Silicon Valley Bank (SVB) failed on March 10. According to data from derivatives trading data site Coinglass, over $280m in short crypto positions were liquidated during the past 24 hours.

While dark clouds sit over Silicon Valley, Bitcoin is thriving, according to Fiona Cincotta, senior financial markets analyst at City Index. Crypto currency is extending its impressive rally, as conventional banks find it difficult to maintain the trust of customers. Bitcoin has often been considered an alternative to the conventional banking system, and as unpredictability in that sector continues, Bitcoin sees a rise in safe-haven flows.

The virtual digital tokens market steadied after a tumultuous week that saw three crypto-friendly banks in the US collapse as regulators in the county took steps to shore up the country’s banking sector, including pledging to totally safeguard depositors. The steps also helped to bring the world’s second-largest stablecoin, USD Coin, back to its intended $1 peg, which cracked over the weekend after the shutdown of SVB.

The government bailout of SVB depositors was seen as a boon by many investors, and helped Bitcoin move past its 200-day moving average of $19,740, said Hayden Hughes, co-founder of social-trading platform Alpha Impact. Sustained progress above the 200-DMA are generally early indicators of a bull market, Hughes said.

If we stay at 25,000, the next stops would be 28k and 30k, he said.