As the national banking crisis unfolds, Bitcoin has emerged as a beacon of stability and strength, with key data points from Ark Invest’s March report highlighting the cryptocurrency‘s resilience. During this tumultuous period, Bitcoin settled $650 billion, facilitated around 9 million transactions, and issued approximately 26,000 new BTC at a steady 1.8% inflation rate. The flagship cryptocurrency attracted about 13 million new addresses and generated nearly $700 million in revenue for miners securing the network.
In March, bank deposits experienced a 4.1% drop, while the Federal Reserve’s decisions led to Silicon Valley Bank’s bankruptcy and the instability of other regional banks. Despite these challenges, Bitcoin’s value appreciated 49% from a low of $19,500 on March 10th to $29,150 on March 30th, showcasing its potential as a safe haven during financial crises.
The Ark Invest report also highlights the growing demand for more transparent, auditable, and decentralized financial services in the face of the banking crisis. With the number of transactions in the Bitcoin network consistently exceeding 250k throughout 2023 and reaching 277k in March, the highest level since early 2021, it is evident that consumers are seeking alternatives to traditional financial systems.
During this period, the supply of Bitcoin held by long-term investors reached an all-time high, with nearly 70% of the total circulating supply remaining inactive for at least one year. This strong holding behavior indicates growing confidence in the cryptocurrency’s potential as a reliable store of value.
Furthermore, Ark Invest’s report emphasizes that, as depositors withdraw their money from banks at alarming rates, leading to the most significant year-over-year decline since 1948, Bitcoin has emerged as an attractive alternative investment. This shift is reportedly placing additional stress on the traditional banking system and causing institutions like Silicon Valley Bank to collapse.
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Source: Cryptocurrency - investing.com
