Bitcoin is gaining strength despite the crisis of the US banking system
Hello friends I hope you are well. In this last week the price of bitcoin has had ups and downs but for a couple of days it has been experiencing an upward rally due to the loss of confidence in the banking system in the United States due to distrust of bitcoin has benefited after a year of declining liquidity.
We do not start reading the news, we can notice that the United States financial system is not having a very good time, there are already 3 American banks that have declared bankruptcy and there are financial sectors that are trading below their real value, another bank that The second most important bank in Switzerland is in the eye of the hurricane and is under the magnifying glass of many investors and its shares have dropped to 26,000 dollars per unit. The outlook does not look good, not only for the United States but now also for Europe.
With the alarms set in a crisis of confidence in the financial market, something similar to what happened in 2008 if I remember correctly, many no longer wonder how bitcoin will react from now on. Of course if we take into account that last year (2022), the cryptocurrency market reacted with the technology actions taken by the American monsters on many occasions in response to the bitcoin shot downward.
However, this year has been different from the previous year, bitcoin has recovered a lot of lost ground since the first day of the year where we have seen it decouple a bit but it quickly recovers and many investors see it as digital gold and consider it a store of value. This narrative has sharpened in recent days, thanks to the banking crisis and the increase in inflation in the United States unleashing a bull run in the price of bitcoin.
Already with the cards in favor of the cryptocurrency, it has a greater market capitalization, one can look at another panorama of the future and ask ourselves what is the fate that holds for BTC. From my perspective and considering the different scenarios that the Federal Reserve and the Treasury Department could take with the current banking disaster none of the decisions is favorable for the American economy due to the loss of confidence of the American people and this has made bitcoin benefit.
