The global cryptocurrency market has been booming amid the erupting bank crisis. Bitcoin, the world’s largest cryptocurrency, has soared by over 34 percent in the past 7 days as the traditional market struggles to gain investor confidence. With bank shares falling everywhere, the US Securities and Exchange Commission (SEC) and the lawyer representing XRP holders in the Ripple case seem confident of the Bitcoin price increase. Here are the details…
Ripple lawyer announces Bitcoin support
In a single week, we witnessed the rapid collapse of the three most crypto-friendly banks in the US – Silvergate, Silicon Valley Bank (SVB) and Signature. The failure of the SVB represented the biggest bank failure since the 2008 financial crisis. As we reported on Kriptokoin.com, the collapse of these three institutions accelerated the process perceived as the “abolition of crypto banking” in the USA, while US regulators quickly stepped in to guarantee deposits and prevent a sudden banking crisis. Despite this movement, which is considered to be a “nail in the coffin” for crypto, the crypto space continues to live. Bitcoin hit a 9-month high.
Lawyer John Deaton in the XRP case also pointed to the rise of Bitcoin. Deaton stated that the bank crisis was spreading rapidly. Silvergate Bank highlighted the back-to-back collapses of Silicon Valley Bank and Signature Bank. However, he mentioned that there are 186 banks facing similar problems, such as Credit Suisse and First Republic bank. He added that in a matter of days, the US Federal Reserve (FED) wiped out $300 billion in monetary tightening over the past year. The XRP lawyer believes this will be an important moment for Bitcoin as bank stocks struggle.
Bitcoin is up 5% in the last 24 hours
Meanwhile, SVB Financial Group has reportedly announced that it seeks Chapter 11 bankruptcy protection. This comes days after its unit, Silicon Valley Bank, was taken over by US financial regulators. Bitcoin price has increased by 5% in the last 24 hours. BTC is trading at an average price of $27,000 at the time of writing. According to many experts, the next stop in the largest cryptocurrency by market cap is $28,000. Meanwhile, the 24-hour trading volume of the cryptocurrency increased by 25 percent to $48 billion. However, the BTC price surge came as the global traditional market experienced major turmoil last week. The recent events we have mentioned above (Silvergate, SVB, Signature Bank collapse) are already being compared to the 2008 financial crisis.
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