Bitcoin has advanced as many investors have switched to the digital currency amid the spread of the crisis in the traditional banking sector.
Bitcoin advanced 5% to $28,378.34. Previously, Bitcoin hit $28,554.06, a nine-month high.
The value of all bitcoins on the market has gained about 26 billion dollars. Bitcoin’s rally comes amid imbalances in the global banking sector caused by the stagnation of SVBs in the US. As US regulators rushed to recover deposits in SVBs, concerns about Regional bank weaknesses in the US continued to grow.
In Europe, the Swiss bank took over Credit Suisse. It has been in the spotlight since the failure of SVB. After its biggest partner, the Saudi National Bank, said it could not provide further financial support to the lender due to regulatory bans.
UBS has agreed to buy Credit Suisse for 3 billion Swiss francs in a deal brokered in part by Swiss regulators to prevent the crisis from spreading through the global banking sector.
The Digital Gold Race: Is Bitcoin Still Leading the Way?
Proponents of Bitcoin often refer to it as “digital gold” and refer to it as a store of value, especially in times of global turmoil and without correlation to other asset levels. However, Bitcoin has more often traded on par with stocks, especially the tech-heavy Nasdaq.
But there are suggestions that Bitcoin’s price action is lagging behind stocks. While gold has advanced 8.9% this year, Bitcoin has advanced more than 69.5%.
Interestingly, other cryptocurrencies did not experience the same jump as Bitcoin did on Monday. Ether traded at different levels. Proponents do not view other cryptocurrencies as digital gold in the same way as Bitcoin.
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