Bitcoin (BTC) passes $28,000 amid banking crisis

On Sunday, the price of Bitcoin soared to more than $28,000 as major central banks announced measures to prevent any liquidity crisis.

Indeed, that’s a new high for this year 2023, as the banking crisis sparks renewed interest in digital assets.

The latest price spike comes as investors seek alternatives to traditional banking systems, which have faced increasing challenges amid a wave of regulatory changes and liquidity issues.

Yesterday, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve and the Swiss National Bank announced a joint action to prevent a liquidity crisis. The 7-day U.S. dollar operations will now be changed from weekly to daily. The aim is to ease the pressure on funding markets.

In other words, it is a coordinated action that sets up swap lines, or currency swap agreements, a device that facilitates access to dollars for foreign central banks.

A banking sector in full storm that benefits the Bitcoin asset whose price could go even higher, or not, depending on the economic and financial news to come when the American financial markets open this Monday, March 20, 2023.

Not forgetting of course the announcements of the US central bank on March 22, the FED is indeed expected to announce by how much it will raise its benchmark interest rate.

On their side, bitcoiners believe that the king of cryptos is gaining ground in a hyperinflation scenario. This weekend, former Coinbase CTO Balaji Srinivasan even went so far as to bet $1 million on a $1 million Bitcoin within 3 months, citing a rise in hyperinflation.

“Hyperinflation is happening fast. We’ve seen digital pandemics (COVID), digital riots (BLM), and digital banking rushes (SVB) […] Just like they did in 2008, and over the past decade. The digital devaluation of the dollar is coming and it’s going to be intense,” tweeted the former executive.