For the past two weeks, there was fear in the market. The investors were worried about FED interest rates and SEC crypto regulations. There were several other negative updates due to which the investors were reluctant to invest their funds. Bitcoin was struggling to break the $24,000-$25,000 levels.
Some analysts even started claiming that Bitcoin’s price may start dropping from here. But some analysts and miners were confident that Bitcoin’s price will potentially increase. And the last week’s significant pump has surprised everyone. Some investors think that the bankruptcy of the Silicon Valley bank is the leading cause of this pump.
But there may be some other elements involved. The following Bitcoin weekly news may highlight the reason why Bitcoin’s price has increased last and how it may perform next week.
Bitcoin is Rising Following the Uncertainty in Banking Sector
Silicon Valley Bank is only one example but there are several other banks that are facing similar problems. The stats show that a huge number of depositors are withdrawing funds from the banks due to economic uncertainty. Most depositors are now investing funds into assets that can offer higher yields.
Bitcoin is one of the leading options in this category because Bitcoin has outperformed stocks, bonds, and several other traditional assets since the beginning of 2023. The price of Bitcoin has increased by 66% since the beginning of the year. In fact, the price jumped by 16% within a week.
Some experts say that the global banking sector may trigger an economic meltdown similar to the 2007-2008 economic crisis. Banks are trying to cater to the problem by lifting their deposit yields. But these steps haven’t provided any satisfactory results. In fact, it’s gradually damaging the banks.
Based on the current scenario, some banks will soon start cutting back on new lending and some will even start liquidating their older assets if the problem gets worst. Therefore, the depositors are withdrawing funds from the banks so they don’t get stuck.
Bitcoin and Stablecoins Can Trigger Mass Adoption of Crypto in Africa
The Blockchain Africa Conference was organized in Johannesburg, South Africa last week where most speakers claimed that African countries can play a vital role in the mass adoption of cryptocurrencies. Last year, Bitcoin was adopted as a legal tender in the Central African Republic.
Some experts claimed at that time that the crypto revolution may take place over the next decade. They even claimed that Bitcoin has the potential to become a common currency in the African Union. Jonathan Ovadia, the CEO of Ovex, a South African Crypto Exchange, said that Bitcoin is a great option for transferring funds because it’s a permissionless platform.
But she also warned the minimum wage earners in Africa to avoid putting their entire net worth in cryptocurrencies. The conference primarily revolved around the role of stablecoins in the crypto space. Around 45 speakers shared their thoughts about how stablecoins can affect the crypto landscape in Africa and globally.
Some speakers predicted that the stablecoins will potentially replace the banking system in Africa or it will at least make a huge dent in the traditional banking system. According to a recent prediction, the population of Africa will double by 2050. It’s also an important reason why Africa may accelerate the mass adoption of cryptocurrencies.
Bitcoin Weekly Updates by Former CEO of BitMEX
Arthur Hayes, former CEO of BitMEX has predicted that the global banking crisis will push Bitcoin’s price to $1 million. He said that the regulators are forced to print more cash as depositors aren’t interested in holding USD anymore. Bitcoin’s trading volume has increased by 34% within 24 hours.
Hayes stated that the FED is more concerned about bailing out non-US banks. Thus, the small banks will suffer the damage which will eventually break the depositors’ trust.
Microsoft is Testing an Ethereum Wallet
Microsoft, the famous tech giant, has integrated an Ethereum wallet to its Edge Web Browser that allows users to store Ethereum-based tokens. Microsoft has introduced this new feather under the name “crypto wallet”. And the company has also warned the users about the dangers of keeping their funds in this wallet.
However, this wallet has the potential to compete with the Metamask once it successfully passed the testing procedure. The users can easily use this wallet with the existing Web3 apps. Microsoft is also working on adding a Bitcoin wallet to the web browser.
Many depositors are withdrawing their funds from the banks due to rising concerns about the global banking system. The former CEO of BitMEX has predicted that Bitcoin’s price could reach one million dollars but most investors consider it an unrealistic claim. The mass adoption of Bitcoin and stablecoins is also a positive sign for crypto investors.
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