Bitcoin Holds Strong As Banking Crisis Continues

In the past months, three banks have collapsed, with another bank, Credit Suisse hanging on the balance. According to reports, concerned depositors may be turning to Bitcoin as a relatively secure asset beyond the banking industry’s confines.

Regulators’ Obsession With Crypto – What Is Driving It?

Rather than focusing on the banking industry that appears to be falling apart, financial regulators, particularly those in the United States, have directed their efforts towards suppressing the crypto sector.

Meanwhile, the cryptocurrency industry has over $1 trillion in market capitalization. However, it pales in comparison to the banking industry, which has a total value of approximately $7 trillion.

Mainstream media constantly reports the supposedly widespread illegal activity associated with crypto. Yet, banks are in turmoil while Bitcoin is becoming increasingly popular.

Despite being labeled a “pet rock” by Jamie Dimon, the CEO of JP Morgan, Bitcoin has held its ground while depositors are avoiding banks. This raises the question of what makes Bitcoin so attractive.

One possibility is that Bitcoin is an asset that exists outside of the banking system’s turmoil. Government or third parties cannot influence it, although the approval of a Bitcoin Futures ETF by the SEC Chairman does allow institutional money to access the asset.

Additionally, bail-ins and bail-outs aren’t available in the Bitcoin network. Henry Ford once remarked, “if the people understood our banking and monetary system, a massive revolution would ensue.”

Bitcoin Shot Up 18% As US Banks Collapse

Unfortunately, the majority of people know little about the banking system. After all, it is not a subject taught in schools, colleges, or universities.

For instance, how many individuals know the system is sustained through debt and must continuously generate more to remain viable? Following the collapse of the high-profile Silicon Valley Bank (SVB), cryptocurrency prices have experienced a surge.

Unlike stocks, cryptocurrencies are typically not backed by hard assets or the cash flow of an underlying company. One would expect the cryptocurrency to plummet when market confidence is shaken.

However, Bitcoin’s price increased by about 18% after regulators announced that they would insure all deposits at SVB and establish a fund to support other banks across the United States. Meanwhile, Bitcoin could return to its previous lows to eliminate the weak investors left.

However, the bull market’s beginning could still push Bitcoin’s price higher than its current value. In contrast, fiat currencies, our current legal tender, can only decrease in value.

Therefore, it is crucial for anyone seeking to safeguard their wealth to educate themselves on Bitcoin and the banking system. Their future prosperity hinges on this knowledge.