Bitcoin Soars to $24,800 Amidst The Crisis
On Sunday, March 19th, Bitcoin increased by 5.19% to $28,380, a gain of $1,400 from its previous closing value. As of today, Monday 20-03-2023 Bitcoin price is $28,149.68 USD with a 24-hour trading volume of $47,919,815,059 USD.
This surge puts Bitcoin, the largest and most popular cryptocurrency, 72% above its low of $16,496 on January 1st of this year. Bitcoin had an impressive week, rising from $20,000 to approximately $28,000 in the past seven days, coinciding with increasing banking issues in the US and Europe.
UBS Agreed to Buy Credit Suisse
Credit Suisse, one of Europe’s biggest banks, announced its acquisition by Switzerland’s largest bank, UBS, for $3.25 billion, which is 60% less than its value last week. The goal of the acquisition, according to both banks, was to secure financial stability and protect the Swiss economy.
Bitcoin reacted positively to the news, reaching a new nine-month high of $28,500 before retracing by $500, and then bouncing back up again. Bitcoin’s market capitalization now exceeds $530 billion, and its dominance over other cryptocurrencies has risen to 46%.
BTC continues to rise
reaching a nine-month high of $28,500 (according to CoinGecko data) shortly after the details of the Credit Suisse merger were announced.
Bitcoin’s price has been on the rise amid the global banking crisis, increasing by almost 70% since the beginning of 2023. The cryptocurrency appears to thrive during times when some of the world’s largest banks are experiencing significant issues. This is not surprising since Bitcoin was created during the last major financial crisis caused by banks, many of which failed and required bailouts.
It is worth noting that Silvergate Capital, Silicon Valley Bank, and Signature Bank have reported operational difficulties that have prompted regulators to shut them down. SVB, which was one of America’s top 20 banks before its collapse, even filed for bankruptcy protection last week.
The Fed Take Action
Federal Reserve and Global Central Banks Take Action as UBS Acquires Credit Suisse. Following a stressful 10-day period during which banks in the US and Europe were on the verge of collapse, the Federal Reserve and global central banks initiated a second round of weekend efforts to support the financial system by expanding the Fed’s capacity to transport dollars wherever they are required.
Additionally, a deal was reached for UBS to acquire the struggling Credit Suisse, reminiscent of the takeover that occurred during the global financial crisis 15 years ago.