Bitcoin Surges Above $28,000 – Fears Around Banking Escalates
On March 19, Bitcoin's price experienced a sharp increase, surpassing the $28,000 zone and marking a nearly 30% boost in value over the past seven days.
The surge was a significant milestone for the leading cryptocurrency, which at the time of writing, is hovering above $28,100, representing a 3.7% increase in the past 24 hours.
The surge in Bitcoin’s value comes at a time when concerns about a global banking crisis are rising, and the fear surrounding regional banks in the United States is increasing after last week’s developments.
The recent shutdown of Silvergate, followed by regulators’ subsequent takeover of Signature Bank and Silicon Valley Bank, has caused the valuations of United States banks to slide.
In Europe, Credit Suisse was acquired by UBS Group for nearly $2 billion earlier in the day as part of emergency plans led by Swiss authorities to preserve the country’s financial stability. As part of the agreement, the Swiss National Bank committed to providing over $100 billion in liquidity to UBS. The $2 billion deal represents a considerable discount under Credit Suisse’s market value on March 17 of nearly $8 billion, according to data from Companies Market Cap.
In light of these developments, Bitcoin’s market capitalization added $194 billion in 2023, representing a 66% gain year-to-date, outperforming Wall Street banks stocks. So far this year, Bitcoin is up about 65%, versus the S&P 500’s 2.5% gain and Nasdaq’s 15% decline in 2023.
READ MORE: BlackRock CEO Optimistic About Digital Assets, Despite Regulatory Risks
Former Coinbase chief technology officer Balaji Srinivasan recently claimed on Twitter that an impending global banking crisis could take Bitcoin to $1 million in less than 90 days. According to Srinivasan’s forecast, a U.S. banking crisis would trigger a hyperinflation scenario leading to the seven-digit Bitcoin price. He is so confident in his prediction that he is betting $2 million on Twitter on his view of the U.S. economy’s future and potential impacts on Bitcoin’s value.
In conclusion, the surge in Bitcoin’s value, combined with the concerns surrounding global banking, has created a unique opportunity for investors.
As the world becomes increasingly unstable and volatile, many are turning to BTC as a safe haven that can withstand economic turmoil. While it remains to be seen whether the asset will reach the seven-digit mark, it is clear that the cryptocurrency’s value will continue to be a hot topic among investors and financial experts.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
