This weekend, Bitcoin (BTC) exceeded $28,000 for the first time since the summer of 2022. After a particularly eventful weekend for traditional finance, and fears related to the collapse of several banks, would cryptocurrency return in force? The point on an unprecedented context.
Stocks continue to fall this morning, against the backdrop of the banking crisis
We explained this morning, the Swiss government, the Swiss Central Bank and several major players in the banking world have managed to save Credit Suisse in extremis … Or at least to support its integration with its rival UBS with billions of Swiss francs. The signal sent is strong, and aimed to reassure the world stock exchanges, worried about a new domino falling in this banking crisis that has spread.
But it has not been enough for the moment. This morning, Asian markets were in the red: the Nikkei closed its session down by -1.42%, while the Hang Seng lost -3.25%. In France, the CAC 40 also fell sharply at the opening this morning. It had already fallen by more than 4% last week. For the moment, the signals sent are not particularly positive, even if the coming hours will allow us to know more about the apparent reluctance of the world’s stock markets.
In another sign of this strong concern, six central banks, including the U.S. Federal Reserve (Fed) and the European Central Bank (ECB), have coordinated an action to support the dollar. This exceptional measure shows the fear that has gripped the global financial system in the face of consecutive falls of major banks.
Bitcoin (BTC) and other cryptocurrencies are rising strongly
It’s usual in the cryptocurrency industry: when stock markets fall, so do cryptocurrencies. But it looks like that won’t be the case this time. This weekend, while the financial markets were fearfully awaiting the opening of the stock exchanges, Bitcoin (BTC) had the luxury of breaking through $28,000. A breakthrough that he just repeated this morning
The price of Bitcoin (BTC) is back up this morning
Other crypto currencies also seem to be benefiting from this rise – at least on a longer time frame. Over the week, Ethereum ETH is up a nice +12%, Binance BNB is up +17%, and Solana SOL is up a similar +14%.
Some see this as evidence that crypto-currencies are finding their place of refuge, in the face of a faltering banking system and central banks artificially propping up a ailing dollar. Will this be the case? After the setbacks of the stablecoin industry, and some centralized players, Bitcoin and Ether seem to be a viable alternative for some.
As analyst Tagado pointed out a few days ago, the dynamics at play could push BTC back above the psychological $30,000 mark. But we will remain cautious: the complex links between crypto-currencies and traditional finance are not only played on stock market indices.
