In the past week, the price of Bitcoin has roared back as the US banking system experienced its fair share of issues. Bitcoin started the week at around $7,800 per coin, but since then, the digital currency has soared nearly 14% in a mere seven days, rising to around $9,000 per coin.
The surge has come amidst reports that the US banking system is struggling to keep up with the influx of stimulus checks and other payments being made to account holders. This has resulted in some banks experiencing slow payments and transfers and an overall decrease in efficiency.
In response to these issues, many people have sought alternative ways to store and move their money, and that’s where Bitcoin comes in. The digital currency has seen an influx of investors and traders looking to benefit from the increase in volatility.
The rise in demand for Bitcoin comes at a time when the Federal Reserve is ramping up its asset purchases. This has caused liquidity problems for banks, making it harder for them to move money around efficiently.
The liquidity issues and asset purchases have resulted in a weaker US dollar, which made Bitcoin an attractive alternative for those looking to hedge against currency depreciation.
At the same time, the uncertainty around the pandemic has also caused investors to seek out alternative investments, including Bitcoin. With the cryptocurrency approaching its all-time highs, investors have seen it as a safe haven asset and thus have been investing in it more heavily.
All in all, there are several factors that are driving demand for Bitcoin, which have culminated in a rise of nearly 14% over the course of the past week. With the US banking system experiencing issues and the pandemic set to continue, it’s likely that we’ll continue to see volatility and demand for Bitcoin in the weeks and months to come.
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