Bitcoin (BTC) is Up Nearly 68% On Year-to-date Chart Amid Banking Turmoil

Bitcoin (BTC) is Up Nearly 68% On Year-to-date Chart Amid Banking Turmoil
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Despite a slight drop over the past 24 hours, Bitcoin (BTC) has gained almost 68% in this year-to-date (YTD). Why investors and traders all over the world are swooning over Bitcoin? Read on to find out!

The ongoing banking crisis has shown the world the importance of cryptocurrencies and decentralized finance (DeFi). After a brutal meltdown in 2022, the digital assets sector has bounced back with tremendous fervor since the onset of the New Year. Amidst the upturn, Bitcoin (BTC) has performed exceptionally well recording better results than nearly 100% of the 500 leading publicly traded companies in the United States during the third month of 2023.

In March, the flagship token outperformed the YTD returns of global conglomerates including FedEx, Apple, and Amazon among others. This marks Bitcoin (BTC) as one of the most revolutionary assets in the financial world. As Bitcoin continues establishing itself as a global digital reserve asset, it’s potential to become a store of value amidst high stock market volatility, soars.

Bitcoin Outshone Legacy Stock in Q1, 2023

Bitcoin Outshone Legacy Stock in Q1, 2023

The largest digital asset by market capitalization has added over $200 billion to its market cap in 2023 as a staggering $100 billion was drained from five of the largest U.S. banks. In a statement, Rajagopal Menon, Vice President at Indian crypto exchange WazirX reiterated,

“Despite concerns about economic contraction and the banking crisis fallout, Bitcoin’s value has been stable more or less with slight volatility.”

It seems, investors and traders all across the globe are betting big on Bitcoin despite macroeconomic headwinds, catastrophic events in the crypto industry, and the looming recession. According to CoinMarketCap, Bitcoin’s year-to-date gains in the January-April 4 period were 68.56%, marking its best quarterly performance in almost two years. The world’s largest cryptocurrency showed some signs of being an anti-fragile asset during this banking crisis outshining legacy stocks. Earlier this week, Edula Patel, CEO at Mudrex explained,

“With instability in the banking sector, inflation data that exceeded expectations, and renewed optimism about a dovish Federal Reserve, Bitcoin has reached levels unseen in approximately nine months.”

BTC Will Outperform Most Risk Assets

Recently, Bloomberg Intelligence Senior Macro Strategist Mike McGlone joined David Lin on his YouTube show to discuss his bullish outlook on Bitcoin (BTC). The strategist expressed confidence in the flagship cryptocurrency, claiming it will outpace most risk assets as it continues to mature. McGlone emphasized Bitcoin’s unique attributes, including its diminishing supply and low adoption rate in its early stages.

Furthermore, the Bloomberg analyst suggested the potential for Bitcoin to become a global digital collateral, despite facing stricter regulatory challenges from authorities all over the world. In the interview, McGlone also explained that astute investors and institutions worldwide are realizing the importance of incorporating Bitcoin into their assets every passing day. He said,

The key thing about Bitcoin is it has something I’ve never seen before in almost any asset. This banking crisis I think is starting to define Bitcoin as its value. Although there are bumps in the road, there are issues with regulation. But one thing we’re seeing recently and lately is it’s starting to shine as indestructible.”

Investors Bet Big on “Digital Gold”

Institutional investors like Michael Saylor’s MicroStrategy continue to accumulate Bitcoin (BTC). As per a Securities and Exchange Commission filing, the company purchased an additional 1,045 Bitcoins (BTC) for a total of $23.9 million between March 23 and April 4. The latest purchase indicates Saylor’s unrelenting love for Bitcoin (BTC) bringing the company’s Bitcoin holdings up to approximately 140,000, worth roughly a whopping $4 billion.

Meanwhile, according to analysts at AllianceBernstein, Bitcoin has been trading as a risk-off asset and has started decoupling from U.S. stocks in November, when the crypto exchange FTX collapsed. Analysts, Gautam Chhugani and Manas Agrawal called the flagship token as “an insurance against economic dislocation and “unwanted consequences of the government’s excessive monetary and fiscal discretion.” 

Given the significant gains in the crypto market, Ben Caselin, Vice President at crypto exchange MaskEX claimed that with the US banking system in peril, there has been a rise both in Bitcoin’s price and dominance in tandem with the rest of the crypto market. In January, global investment bank Goldman Sachs reportedly ranked the bellwether token as the best-performing asset YTD.

Is a New Era of Financial Freedom Coming?

Despite floating at a record low, Bitcoin (BTC) jumped almost 70% in the first three months of 2023. It seems this dramatic rise has managed to temporarily silence critics who considered the cryptocurrency to be on its last legs after the chaos of 2022. Gabor Gurbacs, the CEO of PointsVilleApp said taking a jibe at Credit Suisse,

“I am old enough to remember when the Credit Suisse CEO said Bitcoin is a bubble. Bitcoin was $7,000 then. Bitcoin is now $28,000. Meanwhile, Credit Suisse is getting acquired by a competitor and being bailed out by central banks.”

We at Crypto-Economy believe, the ongoing banking panic in the U.S. and Europe has given birth to a strong belief that in the future, there will be a dramatic uptick in demand for decentralized systems and cryptocurrencies, in which everyone can move their money without the need for banks.


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