Bitcoin market cap grows 60% in 2023 as top Wall Street banks lose $100B

2 years ago

The marketplace capitalization of Bitcoin (BTC) has added $194 cardinal successful 2023. Its 66% year-to-date (YTD) maturation is vastly outperforming apical Wall Street slope stocks, peculiarly arsenic fears of a global banking crisis are rising.

Moreover, Bitcoin has decoupled from U.S. stocks for the archetypal clip successful a year, with its terms rising astir 65% versus S&P 500's 2.5% gains and Nasdaq's 15% diminution successful 2023.

Wall Street banks suffer $100B successful 2023

The six largest U.S. banks — JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), Wells Fargo (WFC), Morgan Stanley (MS), and Goldman Sachs (GS) — person mislaid astir $100 cardinal successful marketplace valuation since the year's start, according to information gathered by CompaniesMarketCap.com.

Bank of America's banal is the worst performer among the Wall Street banking players, with a astir 17% YTD driblet successful valuation. Goldman Sachs trails with an astir 12% YTD decrease, followed by Wells Fargo (-9.75%), JP Morgan Chase (<6.5%), Citi (<3.5%), and Morgan Stanley (>1%).

The U.S. banks' valuation has slid amid the ongoing U.S. determination banking collapse. That includes the announcement past week that Silvergate, a crypto-focused bank, was closing its doors and the consequent takeover of Signature Bank and Silicon Valley Bank by regulators.

The situation further expanded with the near-collapse of First Republic Bank, which was saved astatine the past infinitesimal done a $30 cardinal combined injection by Wells Fargo, JP Morgan Chase, Bank of America, Citigroup, and others.

Cyprus and Greece deja vu?

The emergence of Bitcoin successful the look of a increasing U.S. banking situation is akin to however it reacted during banking collapses successful Cyprus and Greece.

BTC's terms grew by up to 5,000% amid the Cyprus fiscal crisis successful 2013, prompted by the vulnerability of Cypriot banks to overleveraged determination real-estate companies.

The concern was truthful dire that Cyprus authorities, successful March 2013, closed each banks to debar a slope run.

When Greece faced a akin situation successful 2015 and imposed superior controls connected citizens to debar a slope run, Bitcoin's terms gained 150% during the period.

“Fears implicit the stableness of the banking system, on with declining existent involvement rates, creates a bully situation for Bitcoin to rebound," noted Ilan Solot, co-head of integer assets astatine London broker Marex, adding that the crypto "is seen by immoderate investors arsenic a hedge against systemic risks."

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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