To say that the past week or so has been an exceedingly fast-paced one in the world of cryptocurrencies would be quite the understatement. CNBC reported on Friday 18th March that Bitcoin had enjoyed its best week since January 2021, posting a bumper weekly gain of 34.13%.
And it wasn’t just Bitcoin that recorded healthy rises; Ether was also up by 22.88% for the week, which was its best gain over a week since August 2021.
Even as stocks fell on Friday – a day on which many traders contemplated lingering uncertainty about the prospects for Credit Suisse, even following the global investment bank’s confirmation that it would borrow as much as 50 billion Swiss francs ($54 billion) from the Swiss National Bank – crypto prices kept on escalating.
At a time of strain for the traditional banking system, crypto is showing its worth once more
As the weekdays became the weekend, it became apparent that the upward trend for key cryptocurrencies would just keep on going. Approaching 5pm UK time on Sunday 19th March, for example, Bitcoin sailed beyond the £23,000 mark, having been at £20,142 early on Wednesday 15th March.
At around the same time, the cryptocurrency had found itself nearing $28,100 USD – quite the rise from around $24,150 on 15th March.
We could go on and on, but you get the idea. Over a dramatic past week or so that has seen such developments as Silicon Valley Bank and Signature Bank going defunct and Wall Street giants such as Bank of America and Goldman Sachs moving to prop up troubled mid-size bank First Republic, Bitcoin has had the chance to show off its credentials once more.
It is not exactly new, of course, for Bitcoin to be referred to as a form of “digital gold”. However, stressful times for the traditional banking system like those we have seen during the past week are an especially apt demonstration of how cryptocurrency can serve as a safe-haven asset.
Indeed, as Silicon Valley Bank collapsed earlier in the week, Bitcoin’s price trajectory even mirrored that of gold, whereas it had previously been more in line with the path of stocks.
As one key observer, fintech investor Nigel Green, was quoted as saying by The Independent: “Investors are looking for alternative currencies, such as cryptocurrencies. Moving forward, these will increasingly compete with traditional, fiat ones, and this will help trigger the decreasing dominance of currently leading international currencies.”
For advice and assistance when engaging with crypto, there’s no need to look beyond our team
The story of crypto and its relevance to the ongoing crisis affecting the traditional banking system is, of course, a rapidly moving one, with many conclusions yet to be reached. What does already seem very clear, however, is that crypto can bring genuine value to many an individual or organisation that has the right plans and support in place.
Here at TAG Consultancy, we can help ensure you benefit from such support. Indeed, we have long had an excellent all-round reputation as a business consultancy firm in general, able to assist those interested in business start-up, outsourcing their payroll, or launching an AML-compliant ICO, to cite just a few of our areas of knowhow.
It also helps more than a little that we offer a free consultation to all new clients! So, please don’t hesitate to enquire to TAG Consultancy’s skilled professionals today, to find out more about how we could help place you in a better position to succeed as a businessperson or organisation in Gibraltar.