Bitcoin Price Spikes Amid Bank Fallout

Bitcoin Price Spikes Amid Bank Fallout

Libertarian Country |

Three banks have failed in the past three days. According to Jim Bianco of Bianco Research LLC, the fallout results from the Federal Reserve interest rate hikes and banks keeping their deposit rates too low.

California regulators have shut down Silicon Valley Bank, a major lender to tech start-ups. SVB had $209 billion in assets and 17 branches in CA and MA. Although the FDIC says depositors will have access to insured deposits, the number of deposits exceeding insurance limits is unclear.

News of the bank's fallout has sparked panic among businesses and investors, fearing a contagious ripple effect. Gurus like Robert Kiyosaki warned that bank fallout could happen, with the economy facing devastating damage from the covid pandemic, interest rate hikes, inflation and other economic variables.

Over the last week, the most popular cryptocurrency Bitcoin has averaged around $20k per coin. On Monday, the price of Bitcoin spiked to over $24k, according to

Bitcoin Price Spike

On Sunday evening, after the failure of Signature Bank, the Federal Government ordered an emergency rescue of the U.S. banking system to prevent a domino effect.

The DOW, Nasdaq and S&P are all up with investors navigating regulatory action to limit the banking fallout. Likewise, the price of Bitcoin rose, up 14% as of time of writing, putting its market cap at around $464B. The 24hr trading volume was around $55B.

It's unclear if the price trajectory will continue upward or if Bitcoin is rebounding from long-term negative market performance. At any rate, it's inevitable that many investors, responding to the bank fallout, will buy Bitcoin, Ethereum, Gold, and Silver.

Disclaimer: Libertarian Country does not offer financial advice and is not telling you to buy, sell or hold any digital asset. Please consult with your financial advisor before making any investment.

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