The past ten years seem to have underscored Bitcoin's capability to sustain market fluctuations and remain resistant to drops in value. Following a four-month long stretch of consecutive increases at the beginning of 2021, cryptocurrencies' alpha coin experienced a 2% drop in the past 24 hours, its price dipping below the $28,000 level, according to CoinMarketCap. This presents two questions: is this minor hiccup part of a larger downward trend or will it recover?

The current surge in Bitcoin's value has been primarily powered by the notion that the US Federal Reserve will eventually go in the direction of more relaxed monetary policies, as well as the idea that this banking crisis happening in the US has fixed a certain degree of distrust in fiat currencies. Furthermore, Adrian Przelozny, the head of Independent Reserve, stated that the market is currently "very jittery" due to the fear of what will happen with First Republic Bank.

Mass withdrawals from depositors have been happening as of late, with almost $70 Billion leaving the bank since the drop of Silicon Valley Bank earlier this month. This is an alarming number considering the fact that the bank has an average uninsured deposits rate of 68%, exceeding FDIC's $250,000 limit and consequently making a great part of the bank funds vulnerable. The fear of government intervention failing them has deterred investors and depositors away from trusting First Republic Bank.

The past decades of Bitcoin have pointed towards a promising future. A four-month winning streak of growth between last year and 2021, as reported by Bloomberg, has historically been managed to imply an average surge of 260% in the subsequent years, bringing back optimism for those who have been waiting for a change in the cryptocurrency's value.

Initial predictions of Bitcoin's return after its recent downfall remain uncertain. Its loss of 2% could be a mere hiccup or the crying of a greater storm. With the banking crisis in the US eroding population's trust in fiat currencies, the massive withdrawal of funds from First Republic Bank and the previous four-month stretch of invaluable growth, Bitcoin could experience a potential rebound in its value. Nonetheless, investors and depositors alike remain in the same spot of careful waiting.



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