Regarded as the traditional safe haven asset, gold has set new all-time highs on May 4 which witnessed growth in Bitcoin (BTC) above $29,000 in a swift mode change among traders.

After the U.S. Federal Reserve confirmed its highly-anticipated 25 basis points interest rate hike in its last meeting, banks in the nation continue to be turmoiled which raised concerns among investors and traders. The price of gold has hit record highs, extending recent gains to surpass the $2,050 mark.

Just like the precious metal, Bitcoin is regarded among many as a safe haven asset, especially for crypto market participants. BTC enjoyed a 2% climb in the past 24 hours at the time of writing, to currently price at $29,160.

On the contrary, the banking industry is being dealt a heavy blow. The Kobiessi Letter weighed in on the matter, taking to Twitter to portray the losses incurred by large banks in the United States. Only in the after-hours trading session, the stock price of PacWest plummeted 60%, Western Alliance crashed 30%, Metropolitan Bank was hammered by 20% and the list goes on.

For Bitcoin bulls, this may represent some good news as investors are increasingly weary of the traditional financial system and are shifting funds towards cryptocurrencies.

Sources:

https://cointelegraph.com/news/bitcoin-eyes-liquidity-above-30k-as-gold-hits-new-all-time-high

https://www.investing.com/news/commodities-news/spot-gold-prices-hit-record-high-as-fed-signals-potential-pause-3072232

https://twitter.com/KobeissiLetter/status/1653896491222675456

https://coinmarketcap.com/currencies/bitcoin/