The price of Bitcoin is currently on the rise, up more than 20% since last Friday. The rally may be due to a new bull narrative that is possible: using BTC to beat the banks – a situation that is happening in the United States today.
Here’s what that means for the number one cryptocurrency by market cap.
Beat the Banking Crisis With BTC
Late last week, it was revealed that Silicon Valley Bank had effectively failed and that depositors may not be able to withdraw their money. It was the second largest US bank failure in history. What’s worse, it almost caused panic to spread and open in the banks.
A bank run happens when depositors fear insolvency and rush to withdraw their money. Because banks keep almost a fraction of customer deposits on hand for total withdrawals, when many customers try to withdraw all at once, the bank can fail.
Interestingly, the string of banks ran just a few days after the Proclamation’s 90th anniversary in 2039, when FDR declared a week-long bank holiday to stop the shutdown of banks across the country.
Overnight, the US government announced plans to bail out all depositors and restore faith in the US banking system. Otherwise, the open bank can spread. However, the run on banks has started to spread in another way: by creating a new bullish narrative for Bitcoin.
Bank runs lead to Bitcoin rallies | BTCUSD on TradingView.com
Meet Your New Bitcoin Bullish Narrative
Narratives drive financial markets more than any financial or technical composite. In 2019, Bitcoin rose along with precious metals and was pegged as digital gold. Later in 2020 and 2021, it is the “fastest horse” in the race against inflation and takes the cryptocurrency market to an all-time high.
But then the narrative turns gloomy and bearish. Rising rates and the hawkish Federal Reserve, coupled with the failure to work as an inflation hedge during the hottest inflation numbers in several decades, cut the price of Bitcoin down by 78%. Now, after Operation Chokepoint and the attack on the cryptocurrency industry, the US government is now kickstarting the bull run on crypto by once again bailing out the banks.
Bitcoin was created in 2009 in the midst of the historic bank bailouts at the time. Hidden in the Genesis Block is a reference to the event. Fourteen years later, the cryptocurrency underwent its first major beta test.
Bitcoin was created to allow individuals to be their own bank and freed from the collateral damage of repeated examples of human greed. It seems that the market can realize this fact now, and it causes a lot of buying in crypto. But will the narrative be able to take BTC to new heights?
A little chill that runs this bank from exactly 90 years after Proclamation 2039: https://t.co/AS4Wy8RxQ3
– Tony “The Bull” (@tonythebullBTC) March 13, 2023