Bitcoin continues to make headlines as it surges in value, surpassing the $28,000 zone and marking a 16% boost in value in the past 7 days. According to data from Cointelegraph’s MarketPro, the leading cryptocurrency has gained over 37% against the U.S. dollar this week alone.
At the time of writing, Bitcoin is trading at $28,063, representing a 2.4% increase in the past 24 hours. The price reached its highest point during the day at $28,459, before trading at $26,877 during the day’s low. This impressive surge in value has contributed to Bitcoin’s market capitalization adding $194 billion in 2023, representing a 66% gain year-to-date.
One of the reasons for Bitcoin’s significant gains could be attributed to the ongoing fears surrounding regional banks in the United States. Last week’s developments, including the shutdown of Silvergate, followed by regulators’ subsequent takeover of Signature Bank and Silicon Valley Bank, have caused United States bank valuations to slide.
In Europe, Credit Suisse was acquired by UBS Group for nearly $2 billion earlier in the day as part of emergency plans led by Swiss authorities to preserve the country’s financial stability. As part of the agreement, the Swiss National Bank committed to providing over $100 billion in liquidity lines to USB.
Despite the ongoing economic uncertainties, Bitcoin continues to outperform Wall Street bank stocks, rising about 65% versus the S&P 500’s 2.5% gains and Nasdaq’s 15% decline in 2023.
The impressive surge in value has caught the attention of industry experts and analysts, with former Coinbase chief technology officer Balaji Srinivasan taking to Twitter to claim that an impending global banking crisis could take Bitcoin to $1 million within less than 90 days. According to Srinivasan’s forecast, a U.S. banking crisis would trigger American dollar deflation and, thus, lead to a hyperinflation scenario, ultimately leading to a $1 million Bitcoin price.
Srinivasan is so confident in his prediction that he is reportedly betting $2 million on Twitter on his view for the future of the U.S. economy, as well as the potential impacts on Bitcoin’s value. It remains to be seen whether his prediction will come true, but one thing is for sure: Bitcoin continues to be a force to be reckoned with in the world of finance.