Will the Continuous Failures of American Banks Have A Positive Impact on the Virtual Currency Market?

Not long ago, various rumors about the bankruptcy of American banks began to spread, triggered by the bankruptcy of Silicon Valley Bank.

As a result of these rumors, Bank of America shares fell sharply, and global stock markets also dropped.

Before the bankruptcy of Lehman Brothers six months ago, some medium-sized funds crashed, resulting in the subprime crisis.

As before the world financial crisis, house prices in the United States continue to rise, and more and more people are saddled with mortgages. This shows similarities to the bankruptcy of Lehman Brothers.

With the continuous epidemic of various conditions rumors, global stock markets sustained their fall.

However, the virtual currency market has experienced a great deal of prosperity.

Due to the failure of the banks of America, the interest rate hikes of the Federal Reserve (FRB) were suppressed, resulting in Bitcoin breaking through $26,000.

After that, the price of Bitcoin remained stable and funds continued to be transferred to risky assets.

Bitcoin prices tend to rise when US interest rates fall.

In addition, signs such as the decision to rescue Silicon Valley Bank depositors and Bitcoin‘s 200D MA exceeding $19,740 indicate that the market is bullish on price increases.