While the deposit portfolio of American banks has decreased significantly and the borrowing of small banks has skyrocketed, bitcoin has produced a price increase of more than 35% in the last two weeks.
As a result of the effects of the banking crisis, data from the Federal Reserve according to US bank deposits fell by $98 billion in the past week. Interestingly, however, the state’s 25 largest banks gained $67 billion, underscoring the fact that customers moved their money from regional banks to larger financial institutions. However, several people are concerned that the government is not helping smaller banks – especially if they are not considered systemically important. Tyler Winklevoss, co-founder of the Gemini crypto exchange, for example, described the current situation as a modern caste system, where customers of the leading banks are protected, while the rest are exposed to the risk of bank failure.
And the government’s actions do not calm the mood at all, and more and more people are turning away from the smaller banks, which prompts the management to take out loans. According to a CNN report, US small bank borrowing has reached its highest level since the turn of the century (more than $669 billion). At the same time, analysts believe that all this is not necessarily inherent in the current situation, and can only be attributed to the fact that the banks are preparing for a possible bankruptcy.
American investors have played a significant role in the rise of the price of bitcoin. According to Markus Thielin, head of research and strategy at digital assets financial services provider Matrixport, “Americans are taking bitcoin with both hands“. He noted that 47% of recent purchases were attributed to US institutional players.
As a result of the banking crisis, BTC has risen by more than 35% in the past two weeks, surpassing the $28,000 price level. The US dollar has been the world’s primary reserve currency for 79 years, but its position is increasingly under threat in the current situation.
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