Can Bitcoin Escape Bank Run Contagion For Bullish Momentum Soon?
Bitcoin News: As regional banks in the United States face pressure around the Silicon Valley Bank crisis news, the crypto market continues to be affected. In fact, the Bitcoin price is currently at its lowest in around two months thanks to the bank run contagion that began after Silvergate Capital first warned of liquidity issues. In this context, US stock prices went lower on Friday due to the worries around contagion in regional banks. However, crypto traders are optimistic about Bitcoin’s prospects over hopes that investors would like to park funds in the cryptocurrency amid the contagion concerns.
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Although the banking related concerns are having significant impact on the wider markets, analysts expect this to be a limited concern and not spreading throughout the financial sector. A CNBC report quoted Morgan Stanley’s statement saying the Silicon Valley Bank crisis is an individual issue. Meanwhile, the Silicon Valley Bank announced it is attempting to sell itself. The bank said cash burn from customers forced it to look for for raising additional funds to sustain.
Bitcoin To Be Preferred Amid Bank Crisis?
In this context, the crypto community is advocating that such a bank run would never happen with Bitcoin. In fact, it is being said that this is the kind of situation with banks that Bitcoin was designed to solve. Also, Wolf, a crypto trader, believes Bitcoin will go on to break free from all the banking related FUD.
“I think Bitcoin will eventually break away from the contagion and pump, while the sky falls.”
Meanwhile, Bitcoin (BTC) is yet to decouple from the correlation it shares with the S&P 500 Index. The U.S. Dollar Index (DXY) also dropped owing to fears of higher than expected interest rates with the strong economic data reported in recent weeks.
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