Bitcoin’s price is currently skyrocketing, up more than 20% since last Friday. The rise could possibly be due to a whole new bullish narrative brewing: using BTC to beat bank runs – a situation currently unfolding across the US.
What does this mean for the number one cryptocurrency by market capitalization?
Defeating the Banking Crisis with BTC
Late last week, it became clear that Silicon Valley Bank had virtually collapsed, potentially preventing depositors from withdrawing their funds. This is the second largest US bank failure in history. Worse, it caused a massive panic and nearly flooded banks.
Bank runs occur when depositors rush to withdraw money out of fear of insolvency. Banks keep only a fraction of customer deposits on hand for withdrawals, so when a large number of customers attempt to withdraw at once, the bank may fail.
Chillingly, the string of bank runs comes just days after the 90th anniversary of the 2039 Proclamation, with the FDR announcing a week-long bank holiday to end bank runs across the country. made it stop abruptly.
Last night, the U.S. government announced plans to make all depositors whole and restore confidence in the U.S. banking system. Otherwise, a bank run could spread. But banking crackdowns are starting to spread in other ways. It is to create a new bullish narrative for Bitcoin.
Bank runs lead to Bitcoin rallies | BTCUSD on TradingView.com
Meet Your Brand New Bullish Bitcoin Story
Narratives drive financial markets more than financial and technical combined. In 2019, Bitcoin rose alongside precious metals and was cemented as digital gold. In late 2020 and 2021, it became the “fastest horse” in the race against inflation, pushing the cryptocurrency market to all-time highs.
But then the story got darker and bearish. Rising interest rates, coupled with the hawkish Federal Reserve’s failure to act as an inflation hedge during the highest inflation period in decades, pushed Bitcoin’s price down 78%. Now, after Operation Chokepoint and the attacks on the cryptocurrency industry, the US government is again launching a cryptocurrency runaway by bailing out banks again.
Bitcoin was created in 2009 during a historic bank bailout at the time. Hidden within the Genesis Block are references to these events. 14 years later, the cryptocurrency is undergoing its first major beta test.
Bitcoin was created to allow individuals to become their own bank and free themselves from collateral damage from repeated examples of human greed. Markets are recognizing this very fact now, and there may be a flood of buying across cryptocurrencies. But can the narrative take BTC to new highs?
It’s a little chilling that these bank runs are starting exactly 90 years after Proclamation 2039: https://t.co/AS4Wy8RxQ3
— Tony “The Bull” (@tonythebullBTC) March 13, 2023
