After the widely publicized collapse of the Silicon Valley Bank (SVB), accompanied by two other major banking institutions crashing and more at risk, investors seem to be increasingly flocking to the alternative solution – cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
As evident from the declining portion of Bitcoin and Ethereum reserves on crypto exchanges, investors are seeking refuge in these digital assets out of fear that the banking crisis could spread to crypto businesses, as noted by blockchain and financial analysis platform Glassnode in a weekly newsletter sent out on March 13.
Specifically, the report stated that around “0.144% of all BTC and 0.325% of all ETH in circulation was withdrawn from exchange reserves, demonstrating a similar self-custody response pattern” to the collapse of the crypto trading platform FTX.
BTC and ETH balance on exchanges. Source: Glassnode
On top of that, the platform’s team stressed that these numbers spoke volumes about the growing level of investor confidence in crypto in recent weeks:
“On a USD basis, the last month saw over $1.8B in combined BTC and ETH value flow out of exchanges. This is not necessarily large in relative scale. However, observing net exchange withdrawals, especially within the current hostile regulatory environment, does speak to a degree of investor confidence that is worth noting.”
BTC and ETH exchange net position change. Source: Glassnode
Bitcoin price analysis
Meanwhile, Bitcoin has put some breaks on its recent progress, gaining only 0.17% on the day and at press time trading at the price of $24,674, as it began to consolidate the weekly increases of 13.64% and of 13.14% on its monthly chart.
Bitcoin 7-day price chart. Source: Finbold
Ethereum price analysis
At the same time, Ethereum has lost 1.17% in the last 24 hours, trading at the price of $1,672, but still up 8.97% compared to the previous seven days and 11.02% across the last month, as per the latest information retrieved on March 16.
Ethereum 7-day price chart. Source: Finbold
Whether crypto manages to retain investors’ interest remains to be seen and will largely depend on the developing situation in the banking sector, in addition to the developments directly related to the cryptocurrency market and the wider macroeconomic landscape.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
This article has been originally published at: https://finbold.com/banking-contagion-sparks-crypto-frenzy-investors-rush-to-hodl-bitcoin-and-ethereum/?SNAPI