The new week for the cryptocurrency market began with a slight drawdown on a 24-hour scale. Specifically, Bitcoin posted a 2.6 percent decline, while Dogecoin DOGE showed the biggest drawdown for the day with a 7 percent drop.

The capitalisation of the entire coin industry is just above the $1.2 trillion mark. Bitcoin accounts for 44.5 per cent of this amount, while Etherium has a 17.8 per cent share.

Why Bitcoin is better than banks

In their latest report, a team of analysts led by Gautam Chhugani has come to the following conclusion. Here’s a relevant quote from the experts, cited by The Block.

Welcome to the new world of superfast information flows and lightning-fast bank collapses.

In March, more than $120 billion was withdrawn from regional banks in the US to larger banks, causing tangible problems throughout the system. Above all, smaller financial institutions faced what is known as a liquidity crisis, i.e. a shortage of cash with a surge in those wishing to withdraw money from deposits. The reasons for this may be very different. For instance, in case of Silicon Valley Bank, which we already know, most of the clients’ funds were invested in long term state bonds.

The latter were bought a long time ago, when base interest rates were significantly lower than they are today, making them worth less than they used to be. And when the bank needed money, it was forced to get rid of the bonds at a serious loss.

The problems have even spread to Europe. In particular, on 19 March 2023 UBS, the largest Swiss financial holding company, absorbed its long-time rival Credit Suisse, as part of an emergency plan by the Swiss authorities to preserve the country's financial stability.

Soon, instant payment systems will make it possible to withdraw huge amounts of capital from banks at lightning speed. One such tool will be FedNow, which is scheduled to be released this July by the US Federal Reserve. It will provide 24/7 access to real-time payments for financial institutions of all sizes.


In a nutshell, the system is supposed to process payments between participating companies instantly around the clock. In addition to this, it will support clearing and settlement services, with further replenishment of the latter in the future.

It is also important to note that FedNow will not use digital assets or distributed ledger technology beforehand. Consequently, there is no discussion of a central bank digital currency (CBDC), and in general the novelty will not even be a close competitor to independent cryptocurrencies.


The new standards will entail unknown counterparty risks for customers, and crypto is in a position to mitigate some of them. Here’s the experts’ opinion.

The simplicity of cryptocurrencies as bearer digital assets solves the immediate counterparty risks faced by bank clients, but clients also need stability in the form of low volatility.

Bitcoin may not yet be as attractive to most banking customers right now, but that will change in the future, analysts believe. They continue.

As we approach another turning point in economic history, deposit holders will also be watching not only for the stability of the nominal value, but also whether any future incidents will force the Fed to significantly affect the real value of the nation’s currency again.

In other words, even Bitcoin volatility will not be such a problem compared to another banking crisis. And then the so-called hyperbitcoinisation will begin – a process whereby the major cryptocurrency will rapidly enter the daily lives of financial institutions of all sizes and gain a foothold there.

???? YOU CAN FIND MORE INTERESTING STUFF ON US AT YANDEX.ZEN!

Meanwhile, the popularity of cryptocurrencies is noticeable in other areas – Formula 1 racing, for example. According to Cointelegraph sources, the Kraken exchange has confirmed that the text of the Bitcoin whitepaper will make its way onto the Williams Racing team’s cars at the next race. The beginning of the text of the original document by anonymous BTC creator Satoshi Nakamoto, published back in 2008, will be contained inside the logo of the exchange.

Recall that the crypto-exchange announced a partnership with the Williams Racing F1 team back on March 28 as part of a sponsorship deal. This is one of the first partnerships of this scale in Formula One since the rapid collapse of the crypto market in 2022. For other key collaborations between cryptocurrency giants and sports companies and personalities in general, read our detailed piece.

In 2022, around 420,000 people attended the rounds of the Grand Prix race over four days. It’s safe to assume that half a million people will see the Kraken ad and the main fundamental text in the history of the crypto industry this year. Although it sounds beautiful, the details of the crypto exchange’s logo in this case can only be seen up close. Therefore, this move by the popular trading platform should be seen as a tribute to the first full-fledged digital asset.


We believe that the scenario of mass popularisation of Bitcoin and cryptocurrencies in general is indeed possible. Still, while five years ago many people saw digital assets as just a tool for speculation, today they do not seem like a bad investment, which on top of that is not controlled by the financial "geniuses" whose decisions led to the current banking crisis. We can assume that for those unfamiliar with crypto, digital assets have never before been as attractive as they are today.