Bitcoin Crossed $28000 , Do You Guys Think Bitcoin is Safer than Banks?

According to Yahoo finance, Bitcoin, the world's largest cryptocurrency, has surged by 70% this year, hitting a high of $28,000 after bottoming out at $15,400. This surge marks a positive turn for Bitcoin, which had been experiencing continuous downsizing since 2021.

• Investors and analysts are saying that Bitcoin is a great investment for those who are looking for risky assets. 

• Why? Well, a few things have happened recently that are causing uncertainty in the traditional finance world.

Three US Banks Close: Implications for the Economy

First, three US banks have closed, which is never a good sign for the economy. Second, Swiss bank Credit Suisse was taken over by its rival UBS, causing even more turmoil in the financial world. And lastly, the Federal Reserve is going to make a decision on interest rates very soon, which is causing some investors to worry.

Increased Demand for the Dollar Boosts Bitcoin

However, there's good news for Bitcoin! The Federal Reserve has announced that it will be lending more USD swaps to other central banks, which means that there is more demand for the dollar. And as a result, Bitcoin is gaining momentum and rallying. This is great news for those who have invested in Bitcoin or are thinking about it.

Senior Analyst Insights: Wall Street and Bitcoin 

Edward Moya, a senior market analyst for Oanda, has noted that "Bitcoin is rallying as Wall Street becomes more aggressive in pricing Fed rate cuts and as banking sector worries drive some into alternative investments away from traditional financing." So, it's clear that Bitcoin is a great option for those who are looking for something outside of traditional financing.

It is also benefitting from the view that it is the safest of the cryptocurrencies, according to Noelle Acheson, author of the Crypto Is Macro Now newsletter. Smaller cryptocurrencies face more regulatory scrutiny and governance uncertainty, she said.

“Investors are increasingly switching towards bitcoin and gold as alternative ways to store wealth during periods of inflation or increased risk,” Farrell said in a Friday research note.