Friday Causes a Surge in Bitcoin, Ethereum, and Dogecoin Prices
The collapse of regional banks due to the risk posed by rising interest rates has led some investors to turn to cryptocurrencies as an alternative place to store their money. Bitcoin, Ethereum and Dogecoin all rose in value following the collapse of Silicon Valley Bank and Signature Bank. While depositors have been saved in the case of the two banks, there are now questions about how safe deposits over $250,000 are in the US banking system outside of systemically important banks. Cryptocurrencies offer the ability to store money in self-custody through a hardware or software wallet. While it is not clear whether cryptocurrencies are a viable solution for storing money long-term, traders believe they could help to mitigate risks. However, cryptocurrencies such as Bitcoin and Ethereum may not be widely used due to their inability to handle a high number of transactions per second, though the stability of cryptocurrencies such as stablecoins could be a challenge to traditional banks in the future.