The fumbling of the investors while Rome is burning, why is Bitcoin increasing?

The fumbling of the investors while Rome is burning, why is Bitcoin increasing?

The most important cryptocurrency increases, since Bitcoin prices have increased over $ 28,000 per piece in the last week of March. This may look like fumbling, while Rome burns after the breakdown of some key banks for the cryptom market in the United States.

banks fall from

First the Silvergate Bank (Si) was liquidated, then the Silicon Valley Bank (SVB) and the Signature Bank (SBNY) closed by the supervisory authorities.

All three banks were preferred by crypto investors, since the SVB was mostly used to finance startups. In addition, these banks were quite susceptible to interest increases, just like the cryptoma market. The increase in key interest rates of the US Federal Reserve (FED) to 4.75 % hit their balance in the middle of an improper risk management.

The angry banking crisis in the USA and also the stricter regulation of the cryptom market in America urged crypto companies abroad in the USA. Some of these investors move their business to Switzerland because some banks in the country recorded an increase in inquiries from various legal systems for opening an account. Some Swiss banks stated that they have already started onboarding these crypto clients.

banks on the Bermuda Islands, Gibraltar, Puerto Rico, the Bahamas and the Dominican Republic are also considered options for crypto investors.

Archblock, a fifth largest stable coin in the world, True USD (TUSD), has transferred reserves of $ 1 billion to cover the StableCoin to Capital Union Bank on the Bahamas. Some StableCoin operators had serious problems after the collapse of the three crypto-friendly banks. Circle had to stop the exchange from UDSC to Greenback for a few days.

The exchange operation was resumed on March 13 after Circle announced that the $ 3.3 billion that it had in SVB would be completely available, and confirmed that USDC was still redeemable with the US dollar. Even this small interruption of the foreign exchange transactions was used to reduce the USDC exchange rate to $ 0.86. Despite the tamed panic, great demands appeared on Monday after the stock exchange company resumed. In the meantime, the Bitcoin trade accelerates the highest level for 9 months, since prices reached $ 28,800. The daily trade volume of the decentralized stock exchanges (Dex) rose by 250 % to $ 25 billion. The transactions of the BTC whales have been mainly valued at over $ 1 million since November 2022.

but that's not all

The investors hope for the latest banking turbulence in the United States and Europe, where the great Credit Suisse is short of the collapse, after rumbling that the Saudi National Bank would no longer put money into the battered financial institution, since it would exceed the 10%capital border.

Later the chairman of the Saudi National Bank said that Credit Suisse had recently applied for no financial support, and claimed that the latest turbulence in the Credit agent shares was "unjustified". The Swiss National Bank was the last means to grant Credit Suisse a loan of over 50 billion Swiss francs.

The problems in the banking sector gave investors hope that both the Fed and the European Central Bank would be forced to initiate a quantitative loosening again to stabilize the banking system.

However, it is still too early to bet on it because inflation has not yet anchored and not even steamed. Isolated banking problems could be solved by targeted assistance or with the help of national currency supervisory authorities, as in the case of Credit Suisse.

The head of the analytical department at Metadoro, Iván Marchena, believes that such uncertainty on the market could drive capital towards secure facilities, which gives all hopes for a rally risky asset.

The Bitcoin prices are still moving into a strong resistance zone of $ 28,000 to $ 30,000, but it is interesting to see whether this is the case of Coin the breath or more goes up.