• Bitcoin has moved beyond the $28,000 per unit mark, the highest it’s been since June of 2022.
• Three major financial institutions (Silvergate, Signature, and Silicon Valley Bank) have either gone under or announced plans to fully liquidate.
• Credit Suisse was bought out by UBS and this appears to have worked well for bitcoin, which has shot up by more than $4,000 over 24 hours.
Bitcoin Surges Beyond $28K
The banking sector is burning up as of late and the situation is allowing bitcoin to surge like crazy. At the time of this writing, bitcoin has moved beyond the $28,000 per unit mark – the highest its been since June of 2022.
Reminiscent of 2019
2023 in many ways is turning into another version of 2019 when bitcoin incurred a certain degree of healing following heavy blows and wounds experienced in 2018 – which at that point was considered the worst year on record for bitcoin. The currency ended 2019 in the mid-$7000 range.
Worst Year Yet
Unfortunately 2022 was considered far worse than 2018 when crypto space lost more than $2 trillion in overall valuation and coins such as BTC lost more than 70 percent of their worth over 11-12 months. Bitcoin initially rose to a new all-time high of about $68K per unit but just one year later was trading in mid-$16K range.
Three Major Banks Fall
The banking crisis has been going on for last month or so with three major financial institutions (Silvergate, Signature, and Silicon Valley Bank) either going under or announcing plans to fully liquidate. Though Credit Suisse was next big company on bank death list it’s been bought out by UBS thus adding few more years onto its life.
Bitcoin Rises After Buyout
This appears to have worked well for bitcoin which has shot up by more than $4K over 24 hours due to Credit Suisse buyout from UBS. Ilan Solot co-head of digital assets at Marex stated “Bitcoin is correlated with liquidity conditions and real rates; real rates have declined liquidity conditions have expanded and it looks as if we’re entering a new regime”