Cryptocurrency traders and analysts are speculating the main reason behind the current Bitcoin (BTC) rally. In particular, CTO and Senior Fundamental Analyst at Cryptocurrency.Market Leon Fu stated that Satoshi Nakamoto, the creator of Bitcoin, developed the cryptocurrency as a response to the U.S. government bailout back in 2008. Thus, according to Fu, the main reason for pushing BTC up at the moment is again bank bailouts by the government.

The Bitcoin creator himself also shared his opinion on the banking system and the system of fiat currencies back in 2011. He mentioned that banks require too much trust and barely keep a fraction of the currencies in reserve. Besides, banks charge huge fees, preventing the conduct of micropayments as transferring funds via banks is time consuming.

The Bitcoin rally had been going on since the start of this month, with the valuation of Bitcoin increasing rapidly. It initially reached the $26,000 mark, followed by the peak of $29,000. Simultaneously, several major banks became insolvent, such as Silvergate Bank, Silicon Valley Bank, and the most notably, Signature Bank.

The latter is known for its association with Ripple and was acquired by New York Community Bancorp owned by politican Nicole Malliotakis. It's interesting to note that Signature Bank was bought very shortly after the Nasdaq announced it will begin offering crypto custodial services to its institutional clients.

It seems that the current push from the government is favorable for Bitcoin and the entire crypto space as many traders are now speculating the involvement of Wall Street in the same. While the experts are yet to find the ultimate reason behind the rally, the current developments surely capitalize the gains Bitcoin has displayed in the past month.



Other News from Today