According to data provided by CoinMarketCap, the market value of the world’s largest cryptocurrency Bitcoin has managed to return to the $500 billion mark.
The price of the world’s largest crypto so far peaked at $26,533 on the Bitstamp exchange.
This is the first time Bitcoin has touched the aforementioned price mark since July 2022.
The recent banking crisis in the U.S. has helped drive up the price of bitcoin as it is viewed as a safe-haven asset.
The recent collapse of Silicon Valley Bank has been likened to the 2013 Cyprus crisis, highlighting the benefits of a decentralized and censorship-resistant bitcoin.
In response to the implosion of SVB, the US federal government has stepped in to guarantee customer deposits and announced emergency measures to ease depositors’ concerns about withdrawing funds from smaller lenders.
Regulators also seized Signature Bank on Friday, the third-largest bank failure in U.S. history.
The market is also speculating that the current crash will encourage the Federal Reserve to pause its hikes.
The Federal Reserve’s hawkish monetary policy is the main reason why Bitcoin will seriously underperform in 2022. The flagship cryptocurrency acts as a typical risk asset along with other major assets.
Whether the recent price surge will last remains to be seen. Respected CNBC host Jim Cramer recently advised traders to sell Bitcoin after the recent rally.
However, former BitMEX CEO Arthur Hayes sees the crisis-induced rally as the start of another bull market.
While Bitcoin has managed to rise more than 18% in the past 24 hours, it is still down 62% from its November 2021 all-time high of around $69,000.