Bitcoin prices are increasing and crossing one crucial threshold after another. Bitcoin is currently trading at around $28K. It is important to mention that Bitcoin prices have kept increasing since the announcement of the government bailout for SVB depositors.
At present, many traditional investors are shifting their interest toward Bitcoin as a way to hedge the shock of the current banking crisis wave.
The government is taking preventive measures to contain any further bank collapses that can morph into a full-fledged financial crisis. However, consumers seem to have lost their faith in the traditional banking sector.
Meanwhile, other financial experts believe that the bank crisis cannot have a catastrophic impact since it is currently limited to one sector only. Regardless, Bitcoin prices are on the way to bullish corrections, with the latest readings indicating a 2.4% increase in the last 24 hours, as per MarketPro statistics.
The price appreciation in Bitcoin is good news for investors. It entails that investors can find an alternative when the traditional banking sector is in distress. On the YTD scale, Bitcoin has registered gains of over 66%.
It indicated that Bitcoin prices surpassed the profit generated by Wall Street stocks. Considering the current state of the traditional banking sector, it does not come as a surprise.
Bitcoin’s market cap is around $194 billion, with a 37% increase in comparison to the USD value. On the other hand, Bitcoin prices have also outdone the S&P 500 gains of 2.5% and the NASDAQ stock performance of 15% since the start of the current year.
These statistics have been shared by the latest report from Goldman Sachs. On the other hand, the stocks of the US banks have plummeted with an average decline of 10% across the board.
Central Banks and Governments are Taking Preventive Measures to Prevent Banking Crisis
The government of Switzerland has recently facilitated a deal between UBS Group and Credit Suisse to prevent it from getting sacked. The $2 billion has stopped any possibility of a financial crisis in the country.
Meanwhile, the Swiss government is also set to pay $100 billion to UBS to make up for the liquidity.
This deal is also indicative of massive devaluation since Credit Suisse’s market value was calculated at $8 billion.
There are fears about the upcoming recession and other forms of financial crisis in the world. In the meantime, more investors have started to flock around Bitcoin. As a result, Bitcoin’s market cap has added $1 million within 3 months duration.