The growing crisis in the banking sector in the United States has worried specialists, who now predict that more financial institutions may face insolvency. According to analysts at the Hoover Institution think-tank, approximately 200 US creditors are already facing losses due to the recent rise in interest rates and the impact of social media.
The alarming situation is exemplified by the fact that three of the four biggest bank failures in US history have occurred in the past two months. The crisis began with the collapse of Silicon Valley Bank and Signature Bank and was aggravated after the recent bankruptcy of Banco da Primeira República, whose assets were sold to JPMorgan Chase.
Analysis of the banking sector by the Hoover Institution indicated a shortfall of approximately $2 trillion in the sector's aggregate balance sheet. Now, market attention has turned to PacWest Bancorp, a Los Angeles-based bank, which has entered into negotiations with potential partners and investors. The development resulted in a drop in the price of its shares and rekindled fears of a worsening banking crisis.
As the American banking sector faces turmoil, investors are looking for alternative assets, with Bitcoin (BTC) emerging as a favorable option. The cryptocurrency capitalized on the situation by reaching a new multi-month high.
Greg Foss, CEO of Validus Power Corp., observed that Bitcoin can act as insurance against crises in the fiat system and the financial sector in general. He highlighted that unlike fiat currencies, Bitcoin is not manipulated and offers a free and open market.
At the time of publication, the BTC price today it was quoted at US$ 28.882,39, down -0.2% in the last 24 hours.
