Bitcoin, the leading cryptocurrency, saw a significant surge in value on March 19, surpassing the $28,000 zone with a 16% boost in value in the past seven days. At the time of writing, Bitcoin was trading at $28,063, indicating a 2.4% increase in the past 24 hours.
The price of Bitcoin hit its highest point at $28,459 during the day before trading at $26,877 during the day’s low. The cryptocurrency gained over 37% against the US dollar this week, with a market capitalization increase of $194 billion in 2023, representing a 66% gain year-to-date.
Bitcoin has outperformed Wall Street banks stocks, especially with fears of a global banking crisis rising. The cryptocurrency has risen by about 65% so far this year, compared to the S&P 500’s 2.5% gain and Nasdaq’s 15% decline in 2023.
In contrast, the valuations of United States banks have declined amid the ongoing fear surrounding regional banks in the country, following last week’s developments, including the shutdown of Silvergate, and regulators’ subsequent takeover of Signature Bank and Silicon Valley Bank.
In Europe, Credit Suisse was acquired by UBS Group for almost $2 billion on March 19 as part of emergency plans led by Swiss authorities to preserve the country’s financial stability.
The Swiss National Bank committed to providing over $100 billion in liquidity to USB as part of the agreement. The $2 billion deal represents a significant discount under Credit Suisse’s market value on March 17 of nearly $8 billion, according to data from Companies Market Cap.
The uncertainty surrounding global banking has led to speculation that an impending banking crisis could take Bitcoin to $1 million in less than 90 days. Former Coinbase Chief Technology Officer, Balaji Srinivasan, claimed on Twitter that Bitcoin could benefit from a potential banking crisis.
