Bitcoin has been enjoying a revival recently, with the Bitcoin price up by 17% in the past month. At the time of writing, the Bitcoin price is hovering around the $28,000 mark. This takes the market capitalisation of Bitcoin up to a whopping $535,541,123,890 USD at the time of writing.
Speculation is rife that the upward trend for Bitcoin will continue, bearing in mind the current troubles in the global banking industry. The recent collapse of Silicon Valley Bank has spooked global markets, giving rise to fears that the banking industry is out of control in a way similar to that which precipitated the 2008 global financial crisis.
Credit Suisse is another bank to hit the rocks, albeit Credit Suisse is one with an older and more venerable history than Silicon Valley Bank. The rapid takeover of the troubled Credit Suisse by UBS has calmed some fears, but the question investors across the world need to be asking right now is: are any more banks going to hit the wall?
It’s our view that Bitcoin and other cryptocurrencies will benefit from an uplift in value on the back of this uncertainty as more and more people, once again, turn to decentralized currency as a an essential way of creating a more stable economic environment. The whole point of cryptocurrencies is that the responsibility for the stability of the currency sits with the generally public, through their mutual confidence in the system, and not with policy makers who risk inspiring a lack of confidence in the global banking system.
It’s worth bearing in mind that back in 2021, at the peak of its price climb, the Bitcoin price hit over $67,000. If confidence in global banking remains shaky, it is possible we might see a slow and steady creep back towards those lofty heights.
Important note: The comments reported here do not constitute financial advice and are opinions only. Always seek independent financial advice before investing, and never trade or invest with money you cannot afford to lose.
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