Why did the price of bitcoin rise after the global banking crisis?
The cryptocurrency market witnessed a remarkable rise and huge liquidity, after the Federal Reserve, the Treasury Department and the Federal Deposit Insurance Corporation in the United States announced a plan to rescue clients of Silicon Valley Bank (SVB).
Bitcoin rose by 15.13%, and was trading in the $28,000 range in the last 24 hours.
This move upward pushed Bitcoin to record a market value above $431.3 billion, or 42.35% of the total market capitalization of digital currencies.
Crypto Futures: More Exposure, Less Risk
There are many ways to attack the markets, the way in which we choose to do it will depend a lot on our trading style, but also on the needs and cycles that the market presents. One of these modalities are futures, which are essentially more long-term investments and are based on analysis, projections and the current value of a cryptocurrency.
Will cryptocurrency gains continue as the banking crisis continues?
While cryptocurrencies were supposed to be negatively affected to take the downward path, in light of the difficult conditions experienced by the global financial sector, they violated expectations and achieved record gains.
Bitcoin, the most popular cryptocurrency, topped the gains by about 25% since the outbreak of the banking crisis in America, while the recent rise was somewhat surprising, given the closure of the Silvergate and Signature banks, two of the largest lenders to the cryptocurrency industry.