Bitcoin gained 40 percent in value in 8 days. After this increase, it is too early to say that the bull rally has started. However, what is heard is the sound of the bull's feet.
There is almost no week in which the agenda does not change in the markets. Finally, the bank failures in the USA reminded the markets of the depression experienced in 2008. Following Silicon Valley Bank (SVB), New York-based Signature Bank also declared bankruptcy. To prevent the domino from spreading to a third bank, the giant banks of the USA took out their helping hands.
While the developments in the USA were being watched with concern, the Swiss giant Credit Suisse suddenly appeared on the stage and said 'I am the leading actor'. The latest information on this subject is that UBS, its 'compatriot', is interested in Credit Suisse. So, are the concerns about US and European banks over?
In a study, there were 180 banks that were faced with SVB-like problems, that is, the situation where the assets on the balance sheet became less than the liabilities caused by high interest rates and became technically insolvent. We will see in the coming period whether the dominoes will continue to fall.
Bitcoin's star is shining
Bank collapses, which suddenly turned the agenda upside down, strengthened the expectations that the US Federal Reserve (Fed) would change its policy.
The Fed was expected to increase by 50 basis points at the Open Market Committee (FOMC) meeting to be held on March 21-22. Following concerns about the banking sector, the Fed increased its 'pass' comments at this month's meeting, but the latest expectation has turned into a 25 basis point increase.
Cryptocurrencies, which were seriously injured by the Fed's interest rate increase process, are preparing to rise from the ashes after the recent events. In fact, Bitcoin emerged as a reaction to traditional banking after the global economic crisis in 2008.
