Satoshi Nakamoto Can Explain the Current Bitcoin (BTC) Rally

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CTO and Senior Fundamental Analyst at Cryptocurrency.Market Leon Fu has shared the main reason why Bitcoin and crypto are growing now. When he spoke about it, he was referring to the mysterious creator of Bitcoin, the pseudonymous Satoshi Nakamoto.

Here’s What’s Driving Bitcoin’s Growth Now

Fu tweeted that Satoshi Nakamoto specifically developed Bitcoin as a response to the US government bailing out banks back in 2008. Therefore, Fu believes, the main reason to push BTC up at the moment is again bank bailouts from the government.

As reported by U.Today earlier this month, back in 2011, Satoshi left a message on a Bitcoin forum, sharing his views on the banking system and the system of fiat currencies.

In particular, he said that banks require too much confidence that their currency will not be devalued by central banks. Satoshi stated that people trust banks to hold their money and transfer it electronically, but “they lend it out in waves of credit bubbles with barely a fraction in reserve.”

In addition, the banks charge huge fees, thus making micropayments almost impossible to implement. The time banks take to make transactions is ages compared to Bitcoin and other cryptocurrencies.

Since the beginning of the month, the flagship cryptocurrency first rose to the $26,000 level and then topped $28,000, and is now trading in the $28,400 zone. On March 30, Bitcoin even approached $29,000, changing hands at $28,900.

Here’s who’s buying insolvent crypto-friendly bank

In the last month, several major banks have become insolvent. The first three of them had worked with cryptocurrency exchanges and blockchain firms, Silvergate Bank, Silicon Valley Bank and Signature Bank. Ripple is the former client of Signature Bank, according to a public statement from Brad Garlinghouse.

In a recent tweet today, prominent crypto trader and podcaster Scott Melker shared that Signature is now being acquired by New York Community Bancorp. The latter is owned by Nicole Malliotakis, a politician from NY.

He bought NY Community Bancorp on March 17, according to the tweet, and just hours later it announced the purchase of bankrupt Signature Bank.

Many in the crypto space believe that the crackdown on crypto-friendly banks was orchestrated by regulators to allow Wall Street to profit the lion’s share of the crypto space. Earlier this month, Nasdaq announced that it will begin offering crypto custody services to its institutional clients.