Today, the cryptocurrency market continues to be in a so-called up-trend, i.e. in a growth phase. Bitcoin is trading above $28,000, while the growth leader over the past 24 hours has been the XRP token from the Ripple project. It gave away almost 19 per cent growth.

At the same time, bitcoins continue to be popular among relatively small investors. According to Glassnode, wallet holders with less than 10 bitcoins are now accumulating about 30,000 BTC per month. Consequently, they see great prospects in cryptocurrencies and are willing to take risks at the expense of linking to them.

It is worth noting here that the number of the largest investors, also called whales, is gradually decreasing. Which means we can talk about a healthy distribution of the first cryptocurrency.

Why Bitcoin is rising

In the last week, the value of the major cryptocurrency has risen by 17 per cent. And this is a significant achievement for BTC. Still, Bitcoin has the largest market capitalisation – the product of the number of coins by their exchange rate – in the digital asset market, so it takes the most effort to shift the value of this asset against other coins.

The current rally is partly due to expectations that the US Federal Reserve may slow down, if not stop raising lending rates altogether in response to banking problems. That, in turn, would increase investors’ appetite for risk, which tends to favour risky assets like cryptocurrencies.

However, some analysts are trying to portray the rise of BTC as a real paradigm shift in capital investing. In particular, Caitlin Long, CEO of Custodia Bank, said this on CNBC. Here’s her rejoinder to that.

Many people have come to grips with the instability of the traditional financial system and have been given the “orange pill”. They are turning their attention to Bitcoin for the first time. This scarce asset, like other similar types of assets, is a hedge against the instability of the financial system.

As a reminder, orange is the symbol for Bitcoin in the cryptocurrency world. Accordingly, "getting the orange pill" means realising the benefits of BTC and the world of digital assets in general. Among the merits of this coin are independence from authorities and officials, an extensive system of nodes around the world, a fixed inflation rate and a limited maximum supply of 21 million BTC for the cryptocurrency.

According to Decrypt’s sources, the most popular “safe assets” are gold, government bonds and the national currencies of countries with relatively stable economies. Bitcoin may soon join their ranks in the eyes of the global public.

Recall that previously the need to get in touch with precious metals was reported by billionaire Michael Novogratz. According to him, gold, silver and Bitcoin will prove to be incredibly popular during the banking credit crunch because of the limited supply. Read more about the investor's point of view in a separate piece.

According to Yassin Elmanji, head of cryptocurrency at ARK Invest, digital assets have the potential to become an alternative to traditional banking. Here is a relevant rejoinder from the expert.

Against the backdrop of the banking crisis in the US and Europe, Bitcoin’s rise in price suggests that regulatory oversight has had no impact on the decentralised, transparent and verifiable ecosystem of crypto-assets. On the contrary, Bitcoin and other digital assets are behaving as safe havens for capital.

CoinShares analyst James Butterfill believes Bitcoin has “never stopped being a safe asset. It’s just that this type of asset is usually sensitive to interest rates in the US economy. Now the Federal Reserve is about to retreat from its strategy of continually raising rates, which gives fuel for growth to all “safe assets” in the form of Bitcoin, gold and other similar instruments.

Speaking of gold – the correlation between it and Bitcoin has been called to attention by Clara Medali, head of research at Kaiko. Here’s his quote.

Gold is up more than 7 percent this month thanks to demand for safe-haven assets, while Bitcoin is up more than 30 percent since March 12. The movement in crypto is mainly due to a change in expectations about the Fed’s monetary policy course, with markets now laying down a rate cut as early as June.

Key statements from Fed officials will be made later this evening. That is when the US Federal Open Market Committee (FOMC) will meet again, during which it will announce its decision on a rate change. Fed Chairman Jerome Powell will also speak after the meeting. Usually markets react quite sensitively to his words on further actions of the government body. And in the current banking crisis such remarks will be more important than ever.


We believe that the current banking crisis may not end as badly as some analysts are suggesting. However, the current situation in one way or another demonstrates the weakness of the traditional financial system, which operates on a centralised basis. As can be understood from the collapse of the banks, members of management in this industry make mistakes, but in this case they affect all of humanity. So the idea of insuring against the excessive influence of bankers by linking to cryptocurrencies is clearly not a bad idea.


Stay tuned to our Future Millionaires cryptochat. Here you will be the first to know about the final decision on the US benchmark lending rate.