Cryptocurrencies Weather Financial Storms, Outperform Traditional Stocks
In the wake of the recent banking crises, some investors are turning to alternative options, such as cryptocurrencies.
Banks like Silicon Valley Bank, Signature Bank, and Silvergate have faced financial turmoil, prompting some investors to flock to DEX and CEX tokens like OKB, GMX, dYdX, and GT, which have seen significant price increases in the past 24 hours.
While it’s uncertain if the banking crisis is the sole reason for the increase, it’s clear that some investors are targeting these tokens.
The broader crypto market has seen a large increase in overall value in the last day after taking a hit a few days prior. Other kinds of tokens on the rise are those related to tokenization.
SNX is a standout example, with a nearly 8% rise in price. The overall market cap of the crypto market is now $1.08 trillion, representing a 5.59% increase in the last day.
Despite the recent turbulence in the global market due to bank crashes, Bitcoin and other cryptocurrencies hold strong. BTC is up by nearly 10% over the past 24 hours and is valued at approximately $24,500 at the time of publishing. While some in the industry criticize US authorities’ moves on the banks as being anti-crypto, others believe crypto isn’t to blame for bank problems.
READ MORE: Bitcoin and Ethereum Showing Resilience Amid Banking Crisis – Cathie Wood From Ark Invest
A board member of the Signature bank said as much, commenting that it was a “strong anti-crypto message.” However, Blockchain Association Chief Policy Officer Jake Chervinsky believes crypto isn’t responsible for bank problems.
Several banks have fallen in the past few weeks, with Silicon Valley Bank being one of the most notable. Some fear that its closure may start a contagion. HSBC acquired the UK division of the bank for a single pound, or about $1.21, to help UK customers.
The Federal Reserve also decided to shut down Signature Bank, which focused heavily on crypto, citing system risk as one of the reasons behind the decision. Lastly, Silvergate missed its annual report filing, leading to investors moving to stablecoins.
While the future of the banking industry remains uncertain, the crypto market continues to see growth and stability.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
