Bitcoin is making a comeback surfing the banking crisis

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Bitcoin is making a comeback. After a catastrophic year 2022, the oldest cryptocurrency is gaining momentum again by outperforming all other asset classes.



Bitcoin has largely benefited from the earthquake shaking the US banking sector. On the fringe of the bankruptcy of Silvergate Bank, Silicon Valley Bank and Signature Bank, the price of cryptocurrency has started to rise again. King Bitcoin previously settled above $25,000 stabilize around $27,000. This is the first time since last June, and the start of the bear market, that the cryptocurrency has come this close to $30,000.

bitcoin course

The price of Bitcoin over the past three months, on CoinMarketCap.
Also read: a crypto monument bites the dust
Bitcoin outperforms all assets for the 11th time


After this wave, Bitcoin once again became thebest performing assets of the year, notes Ben Laidler, strategist and analyst at eToro. The expert points this out in a report shared with 01Net “Bitcoin Is Up 70% This Year”, against only 45% for the basket of shares. Cryptocurrencies have therefore managed to establish themselves as “the best performing asset class in the world, for the 11th time in 14 years”.

Since its inception, Bitcoin has outperformed all asset classes such as stocks, derivatives or real estate by ten times. As the month of March comes to a close, the queen of cryptocurrencies has succeeded once again outperform other investments, for the eleventh time since the launch of the Bitcoin blockchain in 2009. For now, it is of course unclear whether the trend will continue for the rest of the year. Note that Bitcoin was also pegged as the worst-performing asset for three years, namely 2024, 2018, and 2022.

btc valuation

Bitcoin’s valuation over the past three months, on CoinMarketCap.

As always, the rise of Bitcoin has benefited the entire crypto asset market. Despite the emergence of a large number of altcoins, Bitcoin still represents 45% of the market, with a capitalization of approximately $540 billion. The crypto industry, for its part, is valued at over $1,000 billion.

Bitcoin laughs when banks cry


Ben Laidler explains this rebound through “concerns about the centralized banking system”. The collapse of three major US banks has indeed damaged investor confidence, despite the measures taken by Joe Biden’s administration to salvage the situation at all costs. The successive bankruptcies of March leave room for that the specter of a global banking crash. In Europe, number 2 in the Swiss banking sector, Credit Suisse was rescued in extremis by competitor UBS. Deutsche Bank, Germany’s largest bank, subsequently collapsed on the stock exchange. The banking sector as a whole is in decline. To avoid a wave of panic, officials and leaders, including German Chancellor Olaf Scholz, have repeatedly assured that the “Banking is stable in Europe”.

In this frightening context, savers and investors are increasingly tempted alternatives to the banking system, such as Bitcoin. These are mainly the private investors of which 29% own shares”, who participated in the cryptocurrency’s upswing, underlined the financial strategist. For their part, institutional investors did not immediately rush to Bitcoin.

In recent weeks, the digital currency has gradually recovered free themselves from the financial markets, adds the report. Until now, Bitcoin has been correlated with the US stock market, mainly technology-related stocks. When stocks rose, Bitcoin tended to rise as well. Similarly, Bitcoin fell as stocks moved lower. Since the banking crisis, BTC has been evolving more independently.

While cryptocurrency benefits from favorable elements such as “lower outlook for inflation and interest rates”, it remains a long way from his previous records. In November 2021, Bitcoin indeed approached $70,000 for the first time. Since this record, the digital currency has gradually collapsed, weakened by industry setbacks and poor macroeconomic conditions. Despite the upswing caused by the banking crisis, Bitcoin is still showing up a drop of more than 50% compared to November 2021. According to analysts from French giant Coinhouse, the cryptocurrency market could wait until next year to come back strong…
 
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