Today March 20, has been full of events in the Bitcoin and crypto market. Some major coins and altcoins have posted gains in their seven-day prices. While BTC is up 3.47% in 24 hours, its seven-day gains stand at 27.93%. On the other hand, Ethereum has gained 12.82% in 7 days even though it is losing price in 24 hours.
Surprisingly, the banking crisis could not deter BTC bulls from increasing prices. Instead, the events led to a positive trend change for the digital asset. The interest Bitcoin earned increased its price to a 9-month high gain and a market cap of $26 billion.
BTC Price Soared Amidst Ongoing Banking Crisis
The Bitcoin chart on the price tracker shows that it posted impressive gains earlier today, reaching as high as $28,554.07 before pulling back to the Actual Price of $27,851. At its peak today, the market capitalization gained an additional 46.50 billion. This price gain is a new 9-month high from June 13, 2022.
Many Bitcoin supporters often claim that it is digital gold, a store of value during global financial turmoil. But BTC is outperforming gold recently as it has gained as much as 70% this 2023 while the latter has gained 9%.
The number one crypto is setting its pace as usual, while other coins follow suit. Today’s price performance shows BTC gains while many altcoins lose. For example, Ethereum, the second crypto, loses instead of gaining on the last day.
Others including BNB, XRP, ADA, MATIC, DOGE, BUSD, SHIB, LTC, etc. drop within 24 hours. But as BTC gains, WBTC also gains and shows a 3.49% gain in 24 hours and a 27.29% gain in 7 days.
What is driving the Bitcoin rally?
The banking crisis is one of the main factors driving the recent rally of BTC. When Silvergate, Silicon Valley, and Signature banks collapsed, many investors began to lose confidence in traditional banking systems.
Even though the US feds announceed financing to help banks meet the demands of depositors, the fear has not yet abated. Many people worry that the US banking system is fragile and prone to unexpected failures.
TO report from economists on how a bank run could collapse 190 US banks further exacerbated the situation. the analysts discovered that 10% of existing banks had less capitalization than Silicon Valley Bank. Also, 10% of US banks have larger unrecognized losses than SVB. However, the closed bank had high unsecured leverage, in addition to losses, which led to its bankruptcy.
Unfortunately, the economists compared SVB’s problem with other banks and found that many more banks are already at risk. This growing distrust in the stability of the banking sector has pushed more investors into the bitcoin market.
Featured image from Pexels and chart from Tradingview.com
