Bitcoin value has gone up by over 30%, as of this writing, despite increasing pressure on the fractional reserve banking system brought on by rising interest rates that have seen several high profile banks collapse.
The rise in Bitcoin value comes after several banks, most notably:
- Silvergate Bank
- Silicon Valley Bank
- Signature Bank
- First Republic Bank
- Credit Suisse
face shutdowns and rescues for various reasons.
Following a banking contagion into the crypto space, we have seen some stablecoins depeg, even though slightly, putting into question how ‘stable’ some of these stablecoins actually are.
At the same time, we have seen Binance convert over $1 billion of U.S. dollar stablecoin, BUSD to Bitcoin, Ether and other cryptos.
All these happenings have supporting the narrative that as banks fail, more people want to opt out and buy bitcoin. As a result, this has propelled the price upwards.
Amid the market turbulence, Bitcoin continues to prove as a way to opt out of systemic global bank risks as the current situation clearly demonstrates.