Bitcoin has emerged as a symbol of strength and stability as the national banking crisis plays out, with key data points from Ark Make investments’ March report highlighting the cryptocurrency‘s fortitude. During this turbulent time, Bitcoin processed $650 billion in transactions, enabled about 9 million transactions, and created about 26,000 new BTC at a mild 1.8% inflation rate. The leading cryptocurrency drew roughly 13 million new addresses and brought in close to $700 million in revenue for the miners who were responsible for community security.
Bank deposits fell 4.1% in March, and decisions made by the Federal Reserve resulted in the bankruptcy of Silicon Valley Financial institution and the volatility of other local banks.Despite these difficulties, Bitcoin’s value increased 49% from a low of $19,500 on March 10 to $29,150 on March 30, demonstrating its promise as a safe haven during financial crises.
In view of the banking crisis, the Ark Make Investments report also emphasizes the growing demand for more transparent, auditable, and decentralized financial services. It is clear that consumers are looking for alternatives to traditional financial systems because the number of deals within the Bitcoin community consistently exceeded 250k throughout 2023 and reached 277k in March, the highest level since early 2021.
During this time, the amount of Bitcoin held by long-term investors hit an all-time high, with nearly 70% of the total supply in circulation remaining dormant for at least a year. This consistent holding behavior reflects growing trust in the capability of the cryptocurrency to serve as a reliable store of value.
Furthermore, Ark Investments’ report stresses that Bitcoin has emerged as a hot alternative source of funding as depositors withdraw their money from banks at alarming rates, causing the biggest year-over-year decline since 1948. According to reports, this shift is adding to the strain on the traditional financial system and causing institutions like Silicon Valley Financial to fail.
