Bitcoin hits $28k as uncertainty surrounds banks

Bitcoin price surged on March 19 to surpass the $28,000 zone, marking a 16% boost in value in the past 7-days, according to Cointelegraph's MarketPro data. 

At the time of writing, the leading cryptocurrency is trading at $28,063, a 2.4% increase in the past 24 hours. The price reached $28,459 at its highest point during the day, before trading at $26,877 during the day's low.

Overall this week, Bitcoin has gained over 37% against the U.S. dollar. Bitcoin's market capitalization added $194 billion in 2023, representing a 66% gain year-to-date, outperforming Wall Street banks stocks especially as fears of a global banking crisis are rising. Bitcoin is rising about 65% versus S&P 500’s 2.5% gains and Nasdaq’s 15% decline in 2023.

Bitcoin chart: Value and Trading Volume - March 13-19, 2023. Source: Cointelegraph

United States bank valuations have slid amid the ongoing fear surrounding regional banks in the country afte last week's developments, including the shut down of Silvergate, followed by regulators' subsequent takeover of Signature Bank and Silicon Valley Bank.

In Europe, Credit Suisse was acquired by UBS Group for nearly $2 billion earlier in the day as part of emergency plans led by Swiss authorities to preserve the country's financial stability. As part of the agreement, the Swiss National Bank (SNB) committed to provide over $100 billion in liquidity line to USB.

The $2 billion deal represents a considerable discount under Credit Suisse's market value on March 17 of nearly $8 billion, according to data from Companies Market Cap.

An impending global banking crisis could take Bitcoin to $1 million within less than 90 days, claimed on Twitter former Coinbase chief technology officer Balaji Srinivasan. According to Srinivasan's forecast, a U.S. banking crisis would trigger the American dollar deflation and, thus, to a hyperinflation scenario leading to a $1 million Bitcoin price. Srinivasan is betting $2 million on Twitter on his view for the U.S. economy's future, as well as potential impacts on Bitcoin's value.