Recent data from Glassnode shows that a staggering 67.7% of all BTC has remained unmoved for over a year, which is pretty unexpected. Onchain data also suggested that the world’s largest crypto token, Bitcoin, appears to be a perfect investment option for all investors looking for a way to escape the unfolding banking crisis in the US.
BTC rallying in a financial storm
The collapse of one bank after another has started a banking crisis in the United States which has sent reverberations across the market, causing the US bank stocks to plummet. On the other hand, BTC and major cryptocurrencies are rallying. BTC’s recovery has seen the coin register new Q1 2023 highs, pushing prices above $26,000 at some point during the New York session on March 14.
Experts consider the increment in the prices of bitcoin and other crypto tokens as a testament to the network’s unique attributes as a store of value and a decentralised currency not subject to the whims of central authorities like the US Feds.
It should also be remembered that Bitcoin’s origin is based on the Great Financial Crisis of 2008. The decentralised network was created to respond directly to the crisis and provide an alternative currency immune to the control of a single entity,
Centralised storms are accelerating the adoption of decentralised solutions
As you know, a staggering 67.7% of all BTC has remained unmoved for over a year, which is unexpected. Satoshi Nakamoto, the anonymous creator of Bitcoin, initially message rings true as central banks prepare to intervene and avert a financial crisis. It also allows critics to question the reliability of central banks’ policies.
Bitcoin resembles the idea of shifting away from centralised institutions by offering a secure, decentralised form of currency that is not subjected to the whim of central authorities, Investors now understand that it is Bitcoin’s value in times of economic uncertainty is ramping up, increasing their holdings. Over the last few weeks, Bitcoin was used to facilitate millions of transactions, settling more than 30 billion USD.
What are your thoughts on the recent failures of major banks such as Silicon Valley Bank, Silvergate Bank and Signature Bank? Do you think the centralised storm is accelerating the adoption of centralised solutions? Let us know in the comments below. And if you found our content informative, share it with your family and friends.
Also Read: Circle CEO says they are able to access $3.3 billion of USDC reserves at SVB.
