Banking Crisis Sees Bitcoin Market Cap Rise By $26 Billion

The recent banking crisis has led to a surge in the market capitalization of Bitcoin by $26 billion. As people lose trust in traditional banking systems, they are increasingly turning to cryptocurrencies like Bitcoin as a more secure and reliable alternative. This has resulted in an unprecedented rise in Bitcoin’s value, which is expected to continue as more and more people seek to invest in digital currencies. With its strong track record of stability and security, Bitcoin is emerging as a clear winner in the cryptocurrency market, and is poised to play a leading role in the future of global finance.

Bitcoin and the global crypto market have had an eventful day today, March 20. Many top cryptocurrencies have recorded significant gains in their seven-day prices. While BTC is up by 3.47% in 24 hours, its seven-day gains stand at an impressive 27.93%. On the other hand, Ethereum has gained 12.82% in seven days despite losing in its 24-hour price.

Surprisingly, the banking crisis could not deter BTC bulls from increasing prices. Instead, this event led to a positive trend reversal for the digital asset. The interest Bitcoin gained spiked its price to a 9-month high gain and market cap by $26 billion.

As evidenced by the Bitcoin chart on the price tracker, the cryptocurrency recorded impressive gains earlier today, hitting $28,554.07 before retracing to the current price of $27,851. At its peak today, the market cap gained an additional 46.50 billion, marking a new 9-month high since June 13, 2022.

Many Bitcoin supporters usually state that it is digital gold, a store of value during global financial turmoil. But BTC is outperforming gold recently as it has gained up to 70% this 2023 while the latter has gained 9%.

The number one crypto is setting its pace as usual while other coins follow behind. Today’s price performance shows BTC gains while many altcoins lose. For instance, Ethereum, the second crypto, is losing instead of gaining on the last day. Others, including BNB, XRP, ADA, MATIC, DOGE, BUSD, SHIB and LTC, are all down in 24 hours. But as BTC gains, WBTC also gains and shows a 3.49% gain in 24 hours and a 27.29% gain in seven days.

The banking crisis is one of the major drivers of Bitcoin rally. As Silvergate, Silicon Valley, and Signature banks collapsed, many investors started losing trust in the traditional banking systems. Even though the US feds announced funding to support the banks in meeting depositors’ demands, the fear is yet to lessen. Many people are concerned that the US banking system is fragile and prone to fail unexpectedly.

A report from economists on how a bank run could crash 190 US banks further exacerbated the situation. The analysts discovered that 10% of existing banks had lesser capitalization than Silicon Valley Bank. Also, 10% of the US banks have more considerable unrecognized losses than SVB. However, the shuttered bank had high uninsured leverage, plus losses, leading to its crash. Unfortunately, the economists compared the SVB issue with other banks, discovering that many more banks are already at risk. This increasing distrust in the banking sector’s stability has pushed more investors into the bitcoin market.

In conclusion, the current banking crisis is contributing significantly to the ongoing BTC rally. As prices continue to soar, many investors see Bitcoin as a more stable store of value in today’s unpredictable financial climate.

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