Bitcoin’s remarkable rise amid the backdrop of failing American banks continues, with the top cryptocurrency now shattering the $26,000 level.
The rapid rise of BTC triggered $320 million in liquidations in the last 24-hours, as traders who bet the crypto markets would drop race to cover their positions.
Just five days ago, BTC hit a low of $19,662 amid the failure of Silvergate, a crypto-friendly bank that cited pressure from regulators as a key reason for its collapse.
Flash-forward to today – where it’s now clear that America’s regional banking system itself has issues, with the sudden closure of Silicon Valley Bank reverberating around the world.
SVB failed after revealing it lost $1.8 billion from selling mainly US bonds whose value tanked due to the Fed’s repeated rate hikes.
The news triggered a run on the bank and placed a spotlight on the very reason Bitcoin was created – to offer people around the world an alternative to the banking system.
Bitcoin is an open network that allows anyone to join and validate transactions. It offers people a way to directly and instantly send their capital anywhere in the world in the form of the digital asset BTC, without the need for a bank or middleman.
Bitcoin is backed by the users who continue to adopt the network in exponential numbers, and it features a maximum supply of 21 million coins at a time when most governments have been engaged in seemingly endless cycles of money printing and inflation.
Bitcoin is worth $25,925 at time of publishing, up 6.6% in the last 24 hours.
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