Despite the recent failure of four big banks, Bitcoin has remained resilient; nonetheless, concerns linger regarding the long-term viability of its current surge.
The European Central Bank, the Bank of Canada, the Bank of England, the Bank of Japan, and the Swiss National Bank are among the major central banks that have joined the United States Federal Reserve in a joint programme to support U.S. dollar cash flow and ease pressure on the world’s funding markets. This announcement was made on March 19.
Swap lines, which are agreements between two or more central banks to provide a key liquidity backstop and reduce pressure on the world’s funding markets, will also continue to be active until at least the end of April, according to Fed Chair Jerome Powell.
This might cause the Federal Reserve to hold off on raising interest rates, which has been linked to the current banking crisis.
Several significant financial institutions, including Silvergate Bank, Silicon Valley Bank (SVB), Signature Bank, and Credit Suisse, have shut down since the beginning of March 2023.
In spite of these events, Bitcoin BTC $27,363 has increased in value, reaching a high of $28,500 on March 24-its greatest level since the crypto crisis of June 2022. Despite a decline in March, when the leading cryptocurrency fell under $20,000, the 2023 rally for Bitcoin appears to have restarted.
The value of Bitcoin has increased dramatically since January, when it was trading at roughly $16,500, by a whopping 72.73%. Investors have enjoyed 4,065 successful days out of the nearly 4,600 days that Bitcoin has been a marketable asset, refuting the myth that the crypto economy is unstable.
Explaining the banking crisis :
Financial markets have been rattled in recent weeks by a number of incidents that have shaken the world’s banking sector. When Credit Suisse failed in Europe, competitor bank UBS had to step in and “rescue” them.
Those who have been following Credit Suisse’s financial and legal issues, which have been extensively reported for months, were not surprised by this outcome.
Credit Suisse was promised support by the Swiss National Bank and Swiss Financial Market Supervisory Authority in the form of a 50 billion franc ($54.5 billion) emergency loan. Despite being less than half its recent market value, UBS agreed to buy Credit Suisse for $3.25 billion, which is significantly more than the $1 billion initial offer that Credit Suisse turned down.
