Bitcoin Is a Clear Winner of the U.S. Banking Crisis
George Kaloudis
17 Mar 2023 3:26 PM
The narratives around bank failures, stablecoins and interest rate hikes seem strong enough to propel the price of bitcoin, says CoinDesk's George Kaloudis....
- Silicon Valley Bank failed on March 10, causing Bitcoin's price to fluctuate.
- Bitcoin was trading around $19,600 before the bank failure and jumped to $26,175 just 24 hours later.
- The narrative of the fractional reserve banking system being under stress due to rising interest rates is causing people to opt out of banks and buy Bitcoin.
- The failure of Signature Bank caused U.S. dollar stablecoin USD coin (USDC) to lose its dollar peg, highlighting counterparty risk.
- Binance converted $1 billion of U.S. dollar stablecoin Binance USD (BUSD) to Bitcoin and other cryptocurrencies.
The article discusses the impact of the failure of Silicon Valley Bank on Bitcoin's price and the narrative surrounding the fractional reserve banking system. While the failure of banks and stablecoins losing their pegs highlight counterparty risk, the article suggests that Bitcoin may be a safer option. Overall, the sentiment is neutral to positive towards Bitcoin.
Related Questions
What caused Bitcoin's price to jump after the failure of Silicon Valley Bank?
How does the narrative surrounding the fractional reserve banking system impact Bitcoin's price?
What is counterparty risk and how does it relate to stablecoins and Bitcoin?
Why did Binance convert $1 billion of U.S. dollar stablecoin Binance USD (BUSD) to Bitcoin and other cryptocurrencies?
Is Bitcoin a safer option than traditional banks and stablecoins?
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