Last Friday, Silicon Valley Bank (SBV) abruptly announced its closure, sending shockwaves through the banking industry. However, the shutdown had an unexpected impact on bitcoin, sending the largest cryptocurrency up 25%. This is seen as a response to the crisis facing the traditional banking system, highlighting the value of Bitcoin as a decentralized alternative.
Bitcoin advocates have taken to social media to express their excitement over the cryptocurrency’s rise. Peter Rees, editor-in-chief of Bitcoin Magazine, shared a tweet with the message “Running Bitcoin > Bank Run” and shared a picture of Satoshi Nakamoto’s genesis block.
#bitcoin Bank stocks soar as they plunge – #cryptocurrency Zealots attribute surge to BTC being the only safe haven @azcoinnews https://t.co/jgIuDJU2e5
— Kyptos (@azcoinnews) March 14, 2023
Bitcoin’s anonymous creator Satoshi Nakamoto etched the Times front page article “PM on brink of second bail at bank” into the genesis block on January 9, 2009. The article explained that Bitcoin was created as an alternative to fragile finance and the system was at risk of collapsing.
Alpine-based analyst Stack Hodler, who conducted a macro analysis of Bitcoin, called the surge a “historic surge,” emphasizing that Bitcoin provides a safe haven for those who are struggling to escape the disaster of falling prices and counterparty risk. He also claims that Satoshi’s invention is on track.
MicroStrategy CEO Michael Saylor emphasized, “No matter where you are in the world, Bitcoin is always open and never stops. However, it is also a bank and cannot lend, invest, gamble, dilute, devalue, freeze or confiscate your coins.” assets.”
Catherine Wood, CEO of Ark Invest, commented that it is not surprising that the value of Bitcoin has risen as U.S. banks are at risk of failure.
Strike CEO Jack Mallers emphasized:
“We are seeing the U.S. banking system collapse on its own in real time, and there is no other way but Bitcoin.”
Jordan Peterson, a professor of psychology at the University of Toronto, said Bitcoin could solve the failure of the US banking industry.
All in all, Bitcoin’s sudden rise points to a growing demand for decentralized alternatives to the traditional banking system. The closure of the SVB exposed the fragility of the banking system, and Bitcoin has become a safe haven for investors fleeing counterparty risk and financial collapse.
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according to Kyptos