Great News for Bitcoin and the Crypto Market – the Largest Crypto Passes the Bank Stress Test

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By now, you’ve surely seen the news of a few big banks going bankrupt. We all knew that we live in highly unstable financial times, but it seems that reality hits much different when banks lose hundreds of billions of dollars in investments. And while the bank sector is doing worse for wear, its direct opposite is growing as we speak.

Bitcoin has successfully passed the bank stress test, something that not even the biggest pessimists could foresee. Not just passed, mind you – but passed it with flying colors. For the first time in years, we’re seeing the crypto market in the green, giving us hope that the elusive bear market will finally return with a vengeance.

Not a Good Time for Bank Investments

It’s safe to say that traditional finance has been in hot water the past month. After the dissolution of Silicon Valley’s biggest bank, famous Swiss bank Credit Suisse seems to be having trouble too. Its biggest opponent UBS is trying to buy the bank which seemed impossible a few years ago. Credit Suisse was largely untouched during the COVID-19 pandemic, but it seems that it’s suffering the repercussions now.

A similar thing happened not two weeks ago when the state-chartered SVB bank failed. It held a lot of money from Silicon Valley companies and was never seen as a bank that might fail. SVB was the 16th biggest bank in the USA, so when it closed its doors on March 13, it was a big deal.

And it’s not just banks. Traditional finance is falling through the cracks in a post-pandemic world that’s also dealing with the effects of Russia-Ukraine war. In the middle of it all, cryptocurrencies have shown incredible resilience. Bitcoin is up 21% this month which is incredible compared to a choppy S&P 500 index that has lost 1.4% of its value. In the same span, gold lost 8%.

Trying to Fight Fire with Fire

Some financial experts saw this coming not long ago. Banks are trying to fight inflation with increasing rates fast. That’s an almost academic proof to invest in cryptocurrencies and Bitcoin, and many investors did so. The result? Bitcoin is flying high once again, erasing all the price drops from November onwards and breaking one level after another.

It’s still off its highest mark in 2021, but things are much better right now than they were weeks or months ago. In a bit, the rally could take it as high as $30K, which was unimaginable at the beginning of the year.

Most importantly, Bitcoin has currently severed ties with bonds and stocks. It’s proving to be a great alternative asset for suffering investors, which was Satoshi Nakamoto’s dream all along.

Of course, there will always be naysayers who believe—and hope—that the rally isn’t going to last. But, it’s proof that the highly volatile cryptocurrency can safely navigate choppy waters, and is poised for a big comeback this year.

March 22, 2023: • No Comments

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