Beat Banks works with Bitcoin: discover Bull’s new narrative for crypto

[ad_1]

The price of Bitcoin is currently booming, climbing more than 20% since last Friday. The rally could be due to a brand new bullish narrative that may be brewing: using BTC to beat bank runs – a situation currently unfolding in the US.

Here’s what that could mean for the number one cryptocurrency by market capitalization.

Beat the banking crisis with BTC

Late last week, it was revealed that Silicon Valley Bank had indeed failed and depositors might not be able to withdraw their money. It is the second largest US bank failure in history. What’s worse is that it nearly caused widespread panic and a run on the banks.

A bank run occurs when depositors fear insolvency and rush to withdraw cash. Since banks barely keep a fraction of customers’ deposits available for withdrawal, when a large number of customers try to withdraw all at once, the bank may fail.

Chillingly, the series of bank runs comes just days after the 90th anniversary of Proclamation 2039, when FDR announced a week-long holiday to bring an abrupt end to bank runs across the country.

Overnight, the US government announced a plan to make all depositors whole and restore confidence in the US banking system. Otherwise, bank runs could spread. However, the run on the banks has started to spread in another way: by creating a new bullish narrative for Bitcoin.

Banking Runs Lead to Bitcoin Rallies | BTCUSD on TradingView.com Discover Your Brand New Bitcoin Bullish Narrative

Stories drive financial markets more than financials or technicals combined. In 2019, Bitcoin soared in tandem with precious metals and was pegged to digital gold. Later in 2020 and 2021, it was the “fastest horse” in the race against inflation and it took the cryptocurrency market to new all-time highs.

But then the narrative turned dark and bearish. Rising rates and a hawkish Federal Reserve, coupled with the inability to function as an inflation hedge during the highest inflation numbers in several decades, reduced the price of Bitcoin by 78%. Now, after Operation Chokepoint and the attack on the cryptocurrency industry, the same US government is now launching a bull run in crypto by once again bailing out the banks.

Bitcoin was created in 2009 amid historic bank bailouts at the time. Hidden within the Genesis Block is a reference to these events. Fourteen years later, the cryptocurrency is experiencing its first major beta test.

Bitcoin was designed to allow individuals to be their own banks and free from the collateral damage of repeated instances of human greed. It looks like the market might realize this fact even now and cause a buying frenzy across crypto. But will the narrative be able to take BTC to new heights?

Kind of scary that these bank runs begin precisely 90 years after Proclamation 2039: https://t.co/AS4Wy8RxQ3

— Tony “The Bull” (@tonythebullBTC) March 13, 2023

Follow @TonyTheBullBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis training. Note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com

[ad_2]