Bitcoin Trades At Nine-Month High Following US Bank Collapses - Market Data

Bitcoin Trades at Nine-Month High Following US Bank Collapses - Market Data

Bitcoin, one of the world's leading cryptocurrencies, traded at a nine-month high on Tuesday following the collapse of several US banks in recent days, according to data from cryptocurrency price-tracking site CoinMarketCap

WASHINGTON (UrduPoint News / Sputnik - 14th March, 2023) Bitcoin, one of the world's leading cryptocurrencies, traded at a nine-month high on Tuesday following the collapse of several US banks in recent days, according to data from cryptocurrency price-tracking site CoinMarketCap.

Bitcoin's price broke $26,000 Tuesday morning - its highest price since June, the tracker said. The cryptocurrency started the day at approximately $24,400, having dropped below $20,000 earlier this month.

The collapses of Silicon Valley Bank, Silvergate Bank and Signature Bank have sent ripples throughout the US economy, as the Biden administration assures borrowers that it stands ready to protect their funds.

However, Moody's Investors Service on Tuesday downgraded its outlook on the US banking system to negative, citing a "rapidly deteriorating operating environment.

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John Bugnacki, the deputy general counsel and director of regulation and policy at legal-first crypto software company Tacen, told Sputnik that investors may start converting fiat currency into digital assets like Bitcoin, resulting in a substantial price hike.

Many in the digital asset community have viewed the shutdown of cryptocurrency-friendly Signature Bank as part of a larger crackdown on the industry in the United States, given the Biden administration's skeptical approach to the technology, Bugnacki said.

Digital asset entrepreneurs are looking to reduce their presence in the US and move operations to Europe, East Asia and the Middle East, Bugnacki also said.

Bitcoin reached an all-time high of more than $66,000 in November 2021 before steeply dropping in price in the subsequent months.