The market capitalization of Bitcoin has grown by leaps and bounds in 2023. People are now talking about how the world’s most popular digital asset has decoupled from stocks, rising 10 years after the Cyprus banking crisis. This year, its BTC market cap has added an astonishing $194 billion — an incredible 66% YTD growth.
At the same time, the six largest U.S. banks have lost a staggering $100 billion in market value since the year’s start. Bank of America is leading the pack, with a nearly 17% year-to-date drop, followed by a 12% fall for Goldman Sachs and 9.74% for Wells Fargo. JPMorgan Chase, Citigroup and Morgan Stanley are the least affected, with losses ranging from 6.59% to 0.84%.
The crisis grew worse with last week’s closure of Silvergate, a crypto-friendly bank, followed by the takeover of Signature Bank and Silicon Valley Bank. First Republic Bank was saved at the last minute after four largest banks, JPMorgan Chase, Bank of America, Wells Fargo and Citigroup, agreed to inject $30 billion into the system.
All these developments evoke memories of 2013’s banking collapse in Cyprus and the price boom of BTC, which rose by up to 5000%. The same happened in 2015 when Greece imposed capital controls, and Bitcoin added 150% to its market value.
"Fears over the stability of the banking system, along with declining real interest rates, creates a good environment for Bitcoin to rebound," commented Ilan Solot, co-head of digital assets at London broker Marex. He also added that crypto is seen by some investors as a hedge against systemic risks.
- Bitcoin's market capitalization added $194 billion in 2023.
- Top U.S. banks have lost nearly $100 billion in market value since the year’s start.
- BTC has decoupled from U.S. stocks and gained 66% YTD.
- BTC’s price rose by up to 5,000% amid the Cyprus banking crisis in 2013.
- BTC rose by 150% during the Greece banking crisis in 2015.
- Crypto is seen by some investors as a hedge against systemic risks.
Amid fears of another global banking crisis, BTC market cap has gained an impressive $194 billion in 2023. Top U.S. banks have lost nearly $100 billion in market value since the year’s start, while BTC has decoupled from stocks and risen by 65% YTD. This is reminiscent of the Cyprus and Greece financial crisis of 2013 and 2015, when BTC’s price increasing by up to 5,000% and 150% respectively.