December 2, 2023


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Bitcoin Market Cap Grows 60% in 2023 as Major Wall Street Banks Lose $100 Billion

Bitcoin Market Cap Grows 60% in 2023 as Major Wall Street Banks Lose $100 Billion

Bitcoin (BTC) added $194 billion in market capitalization in 2023. Its 66% year-to-date growth is vastly outperforming major banking stocks on Wall Street, especially as fears of a global banking crisis grow.

BTC market cap daily performance chart. Source: TradingView

Moreover, Bitcoin decoupled from US stocks for the first time in a year, with its price up nearly 65% ​​against the S&P 500’s 2.5% gain and the Nasdaq’s 15% decline in 2023.

SPX and NDAQ YTD performance against BTC/USD. Source: TradingView

Wall Street banks will lose $100 billion in 2023

The six largest US banks — JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Morgan Stanley and Goldman Sachs — have lost nearly $100 billion in market valuation since the start of the year, According to data collected by

Bank of America stock is the worst performer among Wall Street banking players, with a valuation down nearly 17% year-to-date. Goldman Sachs is down nearly 12% year-to-date, followed by Wells Fargo (9.74%), JPMorgan Chase (6.59%), Citi (3.62%) and Morgan Stanley (0.84%).

Wall Street banks’ year-to-date performance. Source: TradingView

Ratings of US banks plummeted amid the continuing collapse of US regional banks. That includes last week’s announcement that a cryptocurrency-friendly bank, Silvergate, was closing its doors, followed by regulators’ subsequent acquisition of Signature Bank and Silicon Valley Bank.

Related: BREAKING: SVB Financial Group files for Chapter 11 bankruptcy

The crisis widened further with the imminent collapse of First Republic Bank, which was saved at the last minute by a 30 billion injections combined By Wells Fargo, JPMorgan Chase, Bank of America, and Citigroup — among others.

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Cyprus and Greece Deja Vu?

Bitcoin’s rise in the face of a growing US banking crisis is similar to its reaction during the bank meltdowns in Cyprus and Greece.

The price of BTC soared by as much as 5,000% amid the Cypriot financial crisis in 2013, spurred by the exposure of Cypriot banks to highly indebted regional real estate companies.

BTC/USD performance during the banking crisis in Cyprus. Source: TradingView

The situation was so dire in March 2013 that the Cypriot authorities closed all the banks to avoid a bank run.

When Greece faced a similar crisis in 2015 and imposed capital controls on citizens to avoid a bank run, the price of bitcoin soared 150%.

The performance of BTC/USD during the banking crisis in Greece. Source: TradingView

“Concerns about the stability of the banking system, coupled with lower real interest rates, are creating a good environment for Bitcoin to recover.” comment Ilan Solot, co-head of digital assets at London broker Marex, adding that cryptocurrency is “seen by some investors as a hedge against systemic risk.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.