The four major banks in the United States are currently experiencing year-to-date losses that vary between 13% and 23%.
In previous instances, #bitcoin has exhibited a negative association with stock markets, a pattern that is also evident presently.
The observed increase in whale accumulation during the previous month indicates that the next rally may not be much influenced by the losses incurred by banks.
The crisis experienced by banks in the United States in March of this year was shown to have a positive impact for Bitcoin and the cryptocurrency market. One of the primary factors contributing to this phenomenon was the absence of a significant link between the Bitcoin and the US financial markets. Although the banks have achieved a certain level of stability since that time, the current market conditions indicate the emergence of a comparable situation.
Once again, American financial institutions see a decline in their performance.
Currently, four prominent banks in the United States, including Citi, Morgan Stanley, Goldman Sachs, and Bank of America, are seeing their lowest performance levels since the occurrence of the banking crisis. The current year-to-date performance of these banks indicates that their current trade prices are currently at their lowest point, even lower than their prices in March of this year.
Citigroup has had a 14% decrease in value since the start of the year, while Goldman Sachs has similarly observed a 13% loss. Morgan Stanley has seen losses amounting to 16% year-to-date, surpassing the performance of the aforementioned entities. Meanwhile, Bank of America has emerged as the frontrunner in terms of decline, with a significant collapse of 23%.
The present state of the United States economy does not provide a favorable outlook for either the banking sector or the stock markets. However, the picture contrasts significantly when considering the cryptocurrency market. Similar to the month of March, as of the present moment, Bitcoin has a significantly adverse association with the S&P 500 Index and NASDAQ, with correlation coefficients of -0.80 and -0.78, respectively.
In March, financial institutions had substantial challenges, leading to a notable surge in the value of Bitcoin, which mirrored the overall upward trend observed in the cryptocurrency industry. Interestingly, Bitcoin is currently experiencing another period of strong growth. The cryptocurrency has had a significant increase of almost 22% throughout the past six days, resulting in a corresponding rise in the value of other alternative cryptocurrencies. Consequently, this surge has contributed to the whole market capitalization of the cryptocurrency industry, which now stands at $1.244 trillion.
If one examines this trend, it becomes evident that the financial losses incurred by banking institutions in the United States are being converted into gains for investors in the cryptocurrency market. This observation implies that the influx of capital into the cryptocurrency sector is not only driven by factors originating from the United States.
Given the inherent volatility of the cryptocurrency market, it would be imprudent to dismiss any single element as the only cause for a market surge. The recent occurrence of BlackRock's spot Bitcoin ETF appearing on DTCC's website, subsequently being delisted and relisted, has been widely seen as a significant factor contributing to the recent market upswing.
In addition, the quick increase can be attributed to the presence of a significant cohort of investors. The buildup of Bitcoin holdings ranging from 100 to 1,000 BTC by a prominent investor, sometimes referred to as a "whale," has been seen since September 21st. Over the course of one month, the observed cohort has experienced a rise in their Bitcoin (BTC) holdings by 50,000 BTC, equivalent to a value of $1.7 billion. Consequently, their total BTC holdings have increased from 3.85 million BTC to 3.9 million BTC.
Historically, instances of accumulation have previously led to a surge in value, and considering the significant impact they hold, it would not be unexpected for Bitcoin to see an imminent surge in price.
Currently, it appears that several elements are collectively contributing to the expansion of the cryptocurrency market, which is a positive development for investors. However, in the event that these aforementioned causes are no longer relevant, the escalating losses incurred by banks might potentially have a positive impact on the cryptocurrency market.
