As More Banks Fell, Bitcoin Rose Beyond $28K

The banking sector is burning up as of late, and the situation is allowing bitcoin to surge like crazy. At the time of this writing, bitcoin has moved beyond the $28,000 per unit mark, the highest it’s been since June of 2022.

Bitcoin Rose Beyond $28K

The news is crazy in that 2023, in many ways, is turning into another version of 2019. As we all remember during that year, bitcoin incurred a certain degree of healing following the heavy blows and wounds it experienced in 2018, which up to that point, was considered the worst year on record for bitcoin. The previous year, BTC rose to its then all-time high of nearly $20K per unit, though by the end of 2018, the world’s number one digital currency by market cap had fallen into the mid-$3,000 range.

In 2019, the momentum behind bitcoin began to pick up, and the asset eventually ended the year about 50 percent higher than where it ended 2018. The currency ended 2019 in the mid-$7,000 range.

2022 was considered far worse than 2018. During that time, the crypto space lost more than $2 trillion in overall valuation as coins such as BTC lost more than 70 percent of their worth over the course of just 11 or 12 months. Bitcoin initially rose to a new all-time high of about $68,000 per unit in November of 2021, though just a year later, it was trading in the mid-$16K range.

It was a sad and ugly sight to see, but perhaps things are finally back on track and those who lost everything in last year’s bear market have a chance of earning their money (and their respect) back. Ilan Solot – co-head of digital assets at Marex – commented:

Bitcoin is correlated with liquidity conditions and real rates. Real rates have declined, liquidity conditions have expanded, and it looks as if we’re entering a new regime.

The banking crisis has been going on for the last month or so, and thus far, three major financial institutions (Silvergate, Signature, and Silicon Valley Bank) have either gone under or announced plans to fully liquidate. Credit Suisse was the next big company on the bank death list, though the company has since been bought out by UBS, thus adding a few more years (at least) onto its life.

The Aiding of Credit Suisse Appears to Have Done the Trick

This appears to have worked well for bitcoin, which has shot up by more than $4,000 over 24 hours. Who would have known that it would be the complete demise of America’s financial sector that would finally give bitcoin and other digital assets the confidence they needed to move up?

Odd that it would take something this dramatic, but it also opens the door to a far less centralized (and much more private) financial industry.

Tags: banking, bitcoin, Credit Suisse