Bitcoin, the world’s first and largest crypto asset by market capitalization, achieved a new high price when it traded above $28,000 Sunday and saw a double-digit gain over the past seven days amid the continuing spread of banking crisis fears in the United States.
The past weeks saw three major banks in the U.S. crash, prompting financial regulators to step in to protect depositors and prevent the banks’ fallout from destabilizing the country’s financial system.
Amid the chaos in the traditional banking sector, which many thought could significantly impact regional banks, among others, depositors began to see the rationale behind Satoshi Nakamoto’s creation of Bitcoin, which was actually developed in the wake of the 2008 financial crisis.
While depositors hurry to pull out their stash of funds from banks’ coffers, Bitcoin showed an impressive performance, one that was never seen since the start of 2023.
On Sunday, the maiden cryptocurrency surged beyond the $28,000 price level and traded at $28,877 at its highest point and $28,063 at its lowest point during the day, showing a massive 16% boost in value over the past seven days.
Bitcoin, as the week closed, obtained a 37% gain against the U.S. dollar and saw $194 billion added to its market capitalization for this year, representing a year-to-date gain of 66% and underlining an impressive performance that left Wall Street bank stocks, eating dust.
Bitcoin showed off this feat while the global investment bank and financial services firm Credit Suisse in Europe was acquired by the Switzerland-founded multinational investment bank and financial services company UBS Group for $3.2 billion as part of the contingency plan Swiss authorities did to preserve its country’s financial stability.
The Swiss National Bank further provided more than $100 billion in liquidity to USB.
The UBS acquisition deal represents a 73% discount based on Credit Suisse’s market value Friday which was almost $8 billion.
Bitcoin investors are bullish, especially as former Coinbase Chief Technology Officer Balaji Srinivasan predicted that the impending global banking crisis could take the world’s largest crypto asset to $1 million in less than 90 days.
“This tweet is the second forewarning. It’ll be ignored and mocked by people who still trust the US establishment, even after the last few years. Who can’t imagine that the US banks and media could be lying to them to this extent,” Srinivasan said in a tweet.
Bitcoin saw a 3.71% gain over the past 24 hours and was trading up $27,981.99 with a 24-hour volume of $42,885,509,574 as of 3:16 a.m. ET on Monday, according to the latest data from CoinMarketCap.