Cryptocurrency has been experiencing an increase in popularity amid widespread tension in the market over bank concerns. BTC, Ethereum and various altcoins saw a spike in the last 24 hours, causing Bitcoin to nearly hit the $30,000 mark. Meanwhile, mature markets are becoming more and more wary of traditional fiat currencies.

Among such concerns is PacWest Bancorp, which is being investigated as part of a larger probe on regional banks in the US, fueled by the fall of three similar California institutions. This distrust has likely played its part in the price of Bitcoin soaring 75% year-to-date, even reaching $31,000 at one point. Other altcoins have also risen in value, seeing a 2-3% uphill shift.

The US Federal Reserve's recent report on potential bank failures, followed by a 25 bps interest rate rise, has also sparked newfound interest in cryptocurrency. Matrixport, a cryptocurrency services provider, believes that this marks the end of a central banking cycle, and could bring a 20% increase in Bitcoin’s price, bringing it to $36,000.

The collapse of major banking giants comes in contrast to last year, which saw the end of key cryptocurrency players. This however, is proving to make crypto a much more desirable store of value. Overall, the crypto market is on quite a bullish run, and with heightened wariness of traditional banking, it is likely to stay that way for the rest of the year.



Other News from Today