Bitcoin (BTC) enthusiasts gradually recover lost ground, targeting a $30,000 comeback as the U.S. banking crisis persists. At the time of writing, Bitcoin (BTC) is trading at $29,179 according to CoinMarketCap data.
On May 5, Bitcoin (BTC) aimed to regain more of its lost ground as $30,000 remained within reach. BTC/USD saw a rebound after a brief slump with U.S. equities on Wall Street the previous day, with support at $29,000 restored.
The ongoing U.S. banking crisis, which now affects several regional banks, continues to influence market sentiment.
According to the Crypto media outlet Whalewire, all regional banks in the United States saw their stocks in the red for the first time ever. This occurred a day after Federal Reserve Chair Jerome Powell claimed the U.S. banking system was stronger than ever.
BREAKING: 100% of all regional banks in the United States have their stocks in the red today, for the first time ever.
This comes a day after Federal Reserve Chair Jerome Powell said the US banking system was stronger than ever. pic.twitter.com/VmaciPN0Ih
— WhaleWire (@WhaleWire) May 4, 2023
Meanwhile, a financial commentary source, Kobeissi Letter, discussed the possibility of the crisis’s effects spreading further.
Today is the first day since March that markets are taking the banking crisis seriously.
S&P 500 is down over 100 points from its high this week while regional banks are at fresh lows.
At first, it appeared the crisis was isolated.
Perhaps this isn’t as isolated as it seemed.
— The Kobeissi Letter (@KobeissiLetter) May 4, 2023
It noted that this was the first day since March that markets were taking the banking crisis seriously, as both stocks and crypto dipped.
As the market seeks new direction, Popular Trader Alan expressed optimism that upside continuation is in the offing.
#Bitcoin has entered the phase of “Storing of power”.
This is for the preparation of the incoming Bull Run.#BTC #Crypto pic.twitter.com/N56Gi3sMNA
— Trader Tardigrade (@TATrader_Alan) May 5, 2023
Memecoin Partly Gains Traction
Although the tacit return of memecoin has aided a spike in Bitcoin (BTC) transaction fees, it remains far from all-time high levels.
On May 3, the total Bitcoin blockchain fees reached $3.5 million, up 400% from late April. The average Bitcoin (BTC) transaction fee rose to $7.2.
The trading frenzy of meme coins like Pepe Coin (PEPE) has unintentionally driven Bitcoin (BTC) transaction costs to multi-year highs. According to Galaxy Research, 50% of all Bitcoin transactions on May 2 were related to BRC-20 transactions.
Transaction fees on the #Bitcoin network yesterday reached their highest point in 2 years, both by mean sats/vbyte per transaction in daily cumulative fees paid. Half of all transactions yesterday related to BRC-20 transactions. 🤔 pic.twitter.com/J8geOOxwlM
— Galaxy Research (@glxyresearch) May 3, 2023
In the same vein, the Ethereum blockchain has also seen skyrocketing gas fees due to the ongoing memecoin hype.
Ethereum remains the most expensive network in terms of transaction fees and it is currently trading at $1,900 according to CoinMarketCap data.