The Capitalization of Bitcoin will Grow by 60% in 2023 as Leading Wall Street Banks Lose $100 Billion

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Rise of Bitcoin

Bitcoin's price has risen 66% since the beginning of the year, far exceeding the growth in shares of Wall Street's largest banks.

This rise especially stands out against the background of the recent bankruptcies of leading U.S. banks and rising fears of an impending banking crisis.

High inflation and instability in financial markets have stimulated interest in cryptocurrencies as an alternative to the existing financial system and a promising investment tool.

The uncertainty of investors in the ability of the authorities to cope with the crisis and stabilize the currency and stock market led to the cryptocurrency # 1 price increase of about 65% compared to the rise of the S&P 500 index by 2.5% and a decrease in the Nasdaq by 15% in 2023.

The collapse of the bank sector

Information from CompaniesMarketCap shows that the largest U.S. banks, such as JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Morgan Stanley, and Goldman Sachs, decreased their market capitalization by nearly $100 billion since the beginning of the year.

Bank of America demonstrated the poorest results among American banks. Its shares fell nearly 17% and Goldman Sachs lost 12%. They were followed by Wells Fargo. It dropped  9.74%, JPMorgan Chase fell by 6.59%, Citigroup by 3.62%, and Morgan Stanley lost 0.84%.

U.S. bank ratings have fallen as the American banking system continues to collapse. Silvergate bank, which actively supported cryptocurrency companies, closed, and regulators absorbed Signature and SVB.

The crisis was further compounded after the near crash of First Republic Bank. It survived thanks to $30 billion in support from Wells Fargo, JPMorgan Chase, Bank of America, and Citigroup.

Is it a repeat of the situation in Cyprus and Greece?

The rise of the bitcoin price amid the continuing banking crisis in the USA is similar to the events that happened during the banking crashes in Cyprus and Greece.

In 2013, during the banking crisis in Cyprus, the price of BTC rose 5,000% because the local banks were heavily dependent on regional real estate companies.

In March 2013, the situation in the country was so difficult that the local authorities closed all banks to prevent them from bankrupt.

In 2015, Greece faced a similar crisis. The authorities of the country had to introduce capital controls on citizens to avoid bank failures. As a result, the price of BTC increased by 150%.


Growing concerns about the stability of the banking system, combined with high inflation and depreciation of national currencies, have increased demand for bitcoin.

For some investors, cryptocurrency has become a means of preserving their savings from devaluation and protecting them from systemic risks.

As a result, cryptocurrencies are growing in popularity and their adoption is spreading around the world.

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