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On March 19, Bitcoin's value experienced a notable increase as it surpassed the $28,000 threshold. As of the time of writing, the leading crypto was trading at $28,253, indicating a 3.9% increase in the last 24 hours.
<source: tradingview, Bitstamp>
Throughout the day, Bitcoin's price reached a peak of $28,459 before experiencing a drop to a low of $26,877. The surge in Bitcoin's value is significant and indicates that the cryptocurrency is continuing to grow in popularity as an alternative investment option. Investors are increasingly turning to Bitcoin as a way to diversify their portfolios and hedge against inflation.
Over the past week, Bitcoin's value has experienced a remarkable gain of 37% against the U.S. dollar, which is a significant increase. Moreover, Bitcoin's market capitalization has increased by $194 billion in 2023, resulting in a year-to-date gain of 66%.
This performance has exceeded the growth seen in Wall Street banks' stocks, which are facing concerns about a potential global banking crisis. In contrast, the S&P 500 has only experienced a modest gain of 2.5%, and Nasdaq has declined by 15% in 2023. These figures demonstrate the increasing appeal of Bitcoin to investors as a viable and profitable investment option.
The concerns surrounding regional banks in the United States have resulted in a decline in bank valuations. This trend was sparked by recent events, such as the closure of Silvergate, which was followed by regulators taking over Signature Bank and Silicon Valley Bank.
These developments have fueled concerns about the stability of the U.S. banking system, leading to a decline in the valuation of banks. The potential impacts of this trend on the broader economy and financial markets are yet to be fully understood, but it is clear that it is causing significant disruption and uncertainty.
The emergency plans led by Swiss authorities to safeguard the financial stability of Switzerland involved UBS Group acquiring Credit Suisse for almost $2 billion. As part of the agreement, the Swiss National Bank pledged to provide over $100 billion in liquidity to UBS.
The acquisition was made at a significant discount compared to Credit Suisse's market value on March 17, which was nearly $8 billion, according to data from Companies Market Cap.
The move is aimed at shoring up the financial stability of Switzerland and ensuring that its banking system remains resilient in the face of potential crises. The acquisition is expected to have a significant impact on the Swiss banking sector, and its implications will be closely monitored by investors and analysts alike.
Balaji Srinivasan, former CTO of Coinbase, has made a bold prediction on Twitter, suggesting that Bitcoin's value could reach $1 million in less than 90 days if there is a global banking crisis. He believes that a U.S. banking crisis could lead to hyperinflation, which would ultimately cause Bitcoin's price to reach seven digits.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.