For the first time since June last year, Bitcoin price traded above $26k on Tuesday. While the spike was short-lived, over $311 million was liquidated from the cryptocurrency market, thus insinuating a bear trap. Nonetheless, Bitcoin price is up over 11 percent in the past seven days to trade at around $24.8k during the Asian trading market. The total cryptocurrency market capitalization is up 2% to about $1.14 trillion.
The second largest digital asset by market capitalization, Ethereum, also recorded similar volatility. According to our latest crypto price oracles, Ethereum’s price jumped from last weekend’s lows of $1,400 to a high of $1,778 on Tuesday.
According to Ark Invest founder Cathie Wood, the instability in the banking system that threatened the stablecoins industry led to the Bitcoin, Ethereum, and altcoin pumps. Moreover, Binance converted its $1 billion Industry Recovery Initiative funds from BUSD stablecoin to Bitcoin, Ethereum, and BNB.
While the US banking system was seizing up in response to bank runs threatening regional banks, Bitcoin, Ethereum, and other crypto networks didn’t skip a beat. Instability in the banking system threatened stablecoins, the on-ramps to DeFi, in stark contrast to regulator rhetoric https://t.co/r5xwC96Pdj — Cathie Wood (@CathieDWood) March 15, 2023
Lark Davis on Bitcoin Pump
According to popular crypto and stock analyst Lark Davis, with over 478k YouTube subscribers, Bitcoin exploded mostly due to the United States banking crisis. Moreover, three US regional banks, including Silicon Valley Bank, Silvergate Capital, and Signature Bank, were shut down in the recent past. However, SVB and Signature Bank depositors were bailed out by the United States federal government with $25 billion.
The analyst highlighted that more regional banks are on the brink of collapse, thus adding more fuel to the Bitcoin pump. While Bitcoin gained as much as 20 percent in the recent past, some banking stocks dropped over 50 percent since the week began.
#Bitcoin is the inverse of banks pic.twitter.com/d1Ys9FWGF1 — The Bitcoin Mindset
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