The New Banking Crisis in the USA Has Benefited Bitcoin

A short time ago, the number one agenda of the world was the US-based banks. was going bankrupt. So before Silicon Valley Bankand then Signature Bank went bankrupt. Some banks began to experience a liquidity crisis at that time. One of them was First Republic Bank. In fact, a few giant banks, including JPMorgan and Bank of America, have joined the First Republic Bank. 30 billion dollars It had saved it from bankruptcy by providing liquidity.

However, all this seems to be insufficient. For First Republic Bankmade a balance sheet statement after the markets closed recently. In the statement, bank deposits fell 35.5 percent year-on-year, and $104.5 billion level has been reported. With the news of the balance sheet, the markets started to become volatile again.

First Republic Bank shares fell 50 percent!

1-month stock chart of First Republic Bank. Source: TradingView

The collapse of the environment of confidence especially affected First Republic Bank investors. just a few days ago 16 dollars The stocks, which were traded at levels, suddenly lost about 50 percent of value and fell to $ 8 levels. In fact, the New York Stock Exchange (NYSE) opened trading operations to prevent further deepening of the decline. had to stop. As such, the allegations of the banking crisis, which were on our agenda almost a month ago, came to the fore again.

First Republic Bank has not declared any bankruptcy at this time. However, some attempts were made to get rid of the financial problems experienced. Sources familiar with the subject assets can be sold they made the statement. Of course, while all this is happening, depreciation it happened. It was not difficult to guess where the people who moved away from the dollar went.

Bitcoin (BTC) has risen above 30 thousand dollars again!

Concerns about the banking crisis in the US have turned to Bitcoin (the king of the cryptocurrency market).BTC) created. BTC, which has already been in an uptrend for a while, has found the excuse it was looking for with the latest developments. BTC, which spent the last 24 hours just above $ 27 thousand, pinned the level of $ 30 thousand with a sharp upward momentum. As of the time of writing this article around 8.8 percent The valued BTC is trading at $ 29 thousand 800 levels.

There is movement not only in Bitcoin, but also in altcoins.

The rise in Bitcoin has had an impact on all altcoins, especially Ethereum (ETH). All of the top 10 altcoins on a volume basis (except stable coins), to the uptrend they entered. The continuation of the upward trend in Bitcoin also the movement in altcoins. can sustain.

So how is it that the banking crisis in a country like the USA reflects positively on Bitcoin?

While the dollar is depreciating, the main reason for the upward trend in Bitcoin and altcoins is that crypto assets are derived from these currencies. not affiliated with any. Bitcoin is not tied or focused on any of the traditional currencies. That’s why people in times of crisis are turning to cryptocurrencies. The increase in demand provided by the inflow of money causes the appreciation of all cryptocurrencies, especially Bitcoin.

Note: This content cannot be considered as investment advice.