Bitcoin Shines but Here's Why Altcoins Failed to Catch Up Amid Banking Crisis

Bitcoin has significantly experienced a rally due to the recent banking crises that took place in the United States and Europe; however, the prices of other crypto assets have not been able to reflect this movement. In terms of price appreciation, most altcoins have floundered as the largest crypto asset.

Over the past few days, Bitcoin's cost has jumped up more than 40% to $28,250 on March 22, 2023. On March 10, 2023, the largest cryptocurrency asset was worth roughly $19,950. However, other significant tokens such as Ethereum, BNB, Cardano, and XRP have not been accomplished in the same way.

What people have said about this

Experts have said that bitcoin is always seen as a place to store good value. Now that there is a banking crisis in some of the world's sturdiest economies and negative macroeconomic sentiment, investors are buying the digital token.

It stated Instead of putting their money in banks, individuals have shifted from stablecoins to Bitcoin due to the doubt surrounding stablecoins and illiquid assets in the banking sector. The Fed's FOMC meeting's upshot will determine the market's direction.

According to Rajagopal Menon, who is the Vice President of WazirX, Last week, the Fed and its associates efficiently bailed out the depositors of SVB. Bitcoin is also thought to be delicate to changes in the money supply. As a result, many people have claimed that the increase in the size of the Fed's balance sheet is the primary driver of the rally that took place.

Also Read: Indian Crypto Users Represent 53% of the Global Total in 2023, 5x More than the US

The Fed had to add $300 billion to its balance sheet as part of this bailout. Given that Bitcoin was technologically advanced in response to the 2008 bank bailouts, the Fed reproduced 300 billion new dollars. In response to the SVB bailout, BTC's price rise steeply.

Bitcoin- The best crypto assets

According to forecasters, Bitcoin is the most popular and well-known crypto asset among crypto investors. It is fascinating to note that, in contrast to bitcoin, gold is also gaining momentum but slowly, but silver is powerless to keep up.