• The ongoing crisis of banks in the United States has many positive implications for Bitcoin, according to an executive at the hardware wallet firm Trezor.
• Josef Tětek said that the current sharp rise of Bitcoin’s price appears to be a direct result of the „apparent fragility of the banking system.“
• He emphasized that Bitcoin was created soon after the world encountered the financial crisis of 2008 and was „likely a response to the unfairness of bailouts.“
Bitcoin Price Surges Amid US Banking Crisis
The ongoing crisis of banks in the United States has many positive implications for Bitcoin BTC $24,999 Bitcoin -3.34% MARKET CAP$482.95bVOL. 24H$2.03b BTC $80.80k , according to an executive at the hardware wallet firm Trezor.
Josef Tětek: Current Events are Definitely Good for Bitcoin
On March 14, Bitcoin broke $26,000, a price level not seen since June 2022, posting the biggest gains this year so far. According to Trezor Bitcoin analyst Josef Tětek, this is likely due to events such as Silicon Valley Bank (SVB), Silvergate and Signature shutting down operations.
Tětek said that these events could potentially make Bitcoin emerge as a safe haven and risk-off asset. He emphasized that it was created soon after the world encountered the financial crisis of 2008 and was „likely a response to the unfairness of bailouts.“
Counterparty Risk in Banking System is a Serious Problem
Tětek stated that these recent events with Silvergate and SVB clearly show that counterparty risk in banking system is a „serious problem,“ though it is sometimes well hidden.
„Banks no longer actually hold our money, but lend it out and buy volatile assets with it,“ he added. „Depositors are, in fact, banks‘ creditors; understandably people are looking for alternatives such as bitcoin.“
Silvergate Collapse Directly Related To FTX Bankruptcy
Tětek suggested that Silvergate’s collapse was directly related its business relationship with crypto exchange FTX which went bankrupt recently.„The current demise of certain banks is definitely good for bitcoin as such,“ concluded Tětek, adding that custodians should take extra caution when self-custody assets.