Bitcoin recovery after the collapse of a billion dollars in global banks – E24

The fear that we may face another banking crisis is now providing a new spring for cryptocurrency enthusiasts. While bank values ​​have fallen, bitcoin is up about 35 percent in the past week.

After a harsh crypto winter, things are currently looking brighter for bitcoin followers. In the past week, the price of bitcoin rose about 35 percent to $27,182, which is equivalent to 290,847 kronor. It is the highest since June last year.

A situation in which higher interest rates arise after a period of very low interest rates “bankruptcy” “bankruptcy” A situation that arises when banks are unable to meet their obligations to customers’ deposits or loan needs, become insolvent in other ways or achieve weak confidence in general.Stephane Ouellette of FRNT Financial says the Bitcoin use case is as perfect as you can imagine bloomberg.

Recent banking meltdowns have heightened the fear that we may end up in a new banking crisis, and thus bitcoin holders may get more hearing to announce that people can be their “own bank.”

The very idea of ​​Bitcoin emerged in the aftermath of the 2008/2009 financial crisis, and is based on complete freedom from the traditional banking system and central banks.

Less fear of interest rates

After several major cryptocurrency crashes in the past year, public confidence in bitcoin has taken a real hit. However, the basic rules of bitcoin have remained the same.

This now stands in stark contrast to the traditional banking system, where it can sometimes be very difficult to predict what will happen, which banks will be bailed out, and how that will happen in practice, Bloomberg writes.

So far this month, the combined market value of the world’s banks has fallen by $459 billion, he reported financial times. This corresponds to more than NOK 4,900 billion.

However, the crisis and the prospects for further central bank action, which are behind the recent cryptocurrency boom, may also be of great help.

In such a situation, it is likely that interest rates will not be raised as much as previously feared, which is positive for risky investments, which most people still consider bitcoin.