Beat Banks Run With Bitcoin: Meet The New Bull Narrative For Crypto
Bitcoin price is currently rising, climbing more than 20% since last Friday. The rally could be due to a whole new bull narrative possibly brewing: Using BTC to beat bank runs – a situation that is playing out across the US right now.
Here’s what this could mean for the number one cryptocurrency by market cap.
Beat the banking crisis with BTC
Late last week it was revealed that Silicon Valley Bank had indeed failed and that 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 almost caused a widespread panic and run on banks.
A bank run occurs when depositors fear insolvency and rush to withdraw money. Because banks have barely a fraction of customer deposits available for withdrawal, when a large number of customers try to withdraw everything at once, the bank can fail.
Frighteningly, the string of bank runs comes just days after the 90th anniversary of Proclamation 2039, when FDR announced a week-long holiday to put an abrupt end to bank runs across the country.
Overnight, the US government announced a plan to make all depositors whole and restore faith in the US banking system. Otherwise, bank runs can spread. However, the run on banks has begun to spread in another way: by creating a new bullish narrative for Bitcoin.
Bank runs lead to Bitcoin rallies | BTCUSD on TradingView.com
Meet your brand new bullish Bitcoin narrative
Narratives drive financial markets more than economic or technical combined. In 2019, Bitcoin climbed in tandem with precious metals and became tied with 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 records.
But then the narrative turned gloomy and bearish. Rising interest rates and a hawkish Federal Reserve, combined with an inability to act as an inflation hedge during the hottest inflation numbers in decades, reduced the Bitcoin price by 78%. Now, after Operation Chokepoint and the attack on the cryptocurrency industry, the US government is setting off a bull run in crypto by once again bailing out 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 has its first major beta test.
Bitcoin was created to allow individuals to be their own banks and be freed from collateral damage from repeated examples of human greed. It appears that the market may realize just this now, causing a buying spree across crypto. But will the narrative be able to take BTC to new heights?
A bit frightening that these bank runs start exactly 90 years after Proclamation 2039:
— Tony “The Bull” (@tonythebullBTC) March 13, 2023
