Bitcoin hits $28k as uncertainty surrounds banks

According to Cointelegraph’s MarketPro data, the Bitcoin $27,524 price rose on March 19 to reach the $28,000 barrier, representing a 16% increase in value in the previous seven days.

The leading cryptocurrency was trading at $28,063 at the time of writing, a 2.4% increase in the previous 24 hours. The price peaked at $28,459 during the day before falling to $26,877 at the end of the day.

Bitcoin has gained more than 37% against the US dollar this week. Bitcoin’s market value increased by $194 billion in 2023, reflecting a 66% year-to-date gain, outpacing Wall Street bank stocks, particularly as concerns about a worldwide banking crisis grow. Bitcoin is up around 65% this year, compared to the S&P 500’s 2.5% rise and the Nasdaq’s 15% loss in 2023.

With last week’s developments, notably the closure of Silvergate, followed by regulators’ eventual acquisition of Signature Bank and Silicon Valley Bank, bank valuations in the United States have fallen.

In Europe, Credit Suisse was acquired by UBS Group earlier in the day for about $2 billion as part of Swiss authorities’ emergency plans to protect the country’s financial stability. The Swiss National Bank agreed to provide approximately $100 billion in liquidity to USB as part of the arrangement.

According to Companies Market Cap statistics, the $2 billion acquisition implies a significant discount to Credit Suisse’s market value on March 17 of over $8 billion.

Former Coinbase chief technology officer Balaji Srinivasan said on Twitter that a worldwide banking crisis might propel Bitcoin over $1 million in less than 90 days. According to Srinivasan’s prognosis, a banking crisis in the United States would cause hyperinflation, leading to a seven-digit Bitcoin price. Srinivasan is wagering $2 million on Twitter on the future of the US economy, as well as potential effects on Bitcoin’s value.