31.7 C
Delhi

Bitcoin is at a nine-month high! The SVB and Credit Suisse bankruptcy increases cryptocurrency values

As the US’s largest banking crisis drove investors away, many turned to “safe havens” such as digital assets, such as bitcoin, which saw a nine-month high. On Sunday, Bitcoin increased by the most since June 12 to hit $28,474. This occurs as anticipation that central banks would decrease the rate of interest rate increases is increasing.

Since the financial industry has been shaken by instability, bitcoin increased by 26% last week and has increased by more than 35% in just 10 days. It began with the failure of Silicon Valley Bank and concluded with UBS’ weekend buyout of Credit Suisse at a staggering 60% discount.

Bitcoin is at a nine-month high! The SVB and Credit Suisse bankruptcy increases cryptocurrency values

Everything you need to know regarding Bitcoin and Credit Suisse!

According to Markus Thielson, head of research and strategy at Singapore-based digital asset financial services company Matrixport, “the momentum is entirely driven by liquidity, as bitcoin provides an alternative liquidity vehicle. He predicted that similar to how it happened in 2021 when bitcoin touched record highs, central bank liquidity would enter the crypto market and drive bitcoin to $45,000 by the end of 2023.

1 58 Bitcoin is at a nine-month high! The SVB and Credit Suisse bankruptcy increases cryptocurrency values

However, despite efforts by Swiss lender UBS to rescue the global banking sector by acquiring rival Credit Suisse to stabilize wider financial markets, worries about the industry have returned, sending gold prices up 1% to their highest level since March of last year on Monday, wiping out earlier losses. Following a 1% session-long decline, spot gold was trading 1% higher at $2,007.30 per ounce.

- Advertisement -TechnoSports-Ad

Gold futures in the US increased 2% to $2,012.50. The US Federal Reserve announced on Sunday that it and other significant central banks would increase the frequency of dollar supply operations into financial markets in order to increase liquidity. The second-largest cryptocurrency, ether, reached a seven-month high on March 19, 2023, of $1,846.50 and last traded at $1,768.

3 55 Bitcoin is at a nine-month high! The SVB and Credit Suisse bankruptcy increases cryptocurrency values

After UBS completed its state-backed acquisition of Credit Suisse on Monday, a deal designed to rebuild trust in a battered sector, traditional assets like banking equities and bonds plunged. Major central banks responded to the prospect of a sudden drop in confidence in the stability of the financial system on 19 March 2023, by taking action to increase the movement of money around the globe. Since the peak of the COVID-19 pandemic, there hasn’t been such a widespread response.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

TechnoSports-Ad

Popular

TechnoSports-Ad

Related Stories

More from author

Airtel Unveils ₹1,499 Plan with Netflix, Jio Launches ₹909 Plan with SonyLIV

Reliance Jio has recently introduced a brand recharge plan priced at ₹909 offering a wide range of benefits, for a duration of 84 days....

Jio Unveils ‘Happy New Year Offer 2024’- ₹2,999 Plan Extended to 389 Days (May 21)

Jio, a prominent telecommunications operator in India, has introduced the "Happy New Year Offer 2024," specifically targeting its prepaid user base. The focal point...

Top JioFi WiFi Plans You Need to Know as per 21st May 2024

Top JioFi WiFi Plans You Must Know - An Entire Guide in 2024 Reliance Jio completely rocked the Indian telecom and internet sector with its...

Richest Racing Drivers in the World as of 2024

The Richest Racing Drivers in the World as of 2024 - All You Need to Know In the realm of racing, achieving success not only...