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This is the reason why crypto is going up and Bitcoin is back in the business

Paras Katoch
bitcoin will reach $1 million in 90 days deal

The failure of the U.S. banking system has pushed investors to look for better investment options.

The U.S. banking system is falling apart like a house of cards. It started with the shutdown of Silicon Valley Bank (SVB) followed by the fall of Signature bank.

Both the banks suffered from the increased interest rate by the Fed that forced customers to withdraw deposits worth millions of dollars in a single day. It is now evident that the shutdown was primarily focused on crypto friendly banks to discourage crypto as an investment vehicle.

Days after SVB collapse, Fed injected $300 billion into the banking system to save itself from collapsing which is likely to result in hyperinflation in the coming months.

Taking a cue from these circumstances, it is evident that US Dollar is no longer a safe haven or can be used as a safe deposit because of the predicted fall in its value.

Having said that, investors have shifted their focus from reserve currency and stocks to digital assets like Bitcoin and Ethereum to hedge their investments against rising inflation.

A study from Glassnode reveals the early signs of a new bull market after studying the on-chain data that indicates the rise in transactions after the bank’s failure.

Acc. to Glassnode, over 122,000 new Bitcoin Wallets were created each day last week and transactions reached a total of 309,500 per day indicating interest in the digital asset.

The news is followed by the fall of Credit Suisse, a global investment bank and financial services firm founded and based in Switzerland. Overall, the market is reacting in the favour of crypto assets while there’s no sign of the fall in interest rates.

The question remains, will Bitcoin reach $100K this year?

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