{"id":46560,"date":"2023-03-18T12:31:43","date_gmt":"2023-03-18T12:31:43","guid":{"rendered":"https:\/\/egrowonline.com\/?p=46560"},"modified":"2023-03-18T12:31:43","modified_gmt":"2023-03-18T12:31:43","slug":"bitcoin-market-cap-grows-60-in-2023-as-top-wall-street-banks-lose-100b","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=46560","title":{"rendered":"Bitcoin market cap grows 60% in 2023 as top Wall Street banks lose $100B"},"content":{"rendered":"


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The market capitalization of Bitcoin (BTC<\/a>) has added $194 billion in 2023. Its 66% year-to-date (YTD) growth vastly outperforms top Wall Street bank stocks, particularly as fears of a global banking crisis<\/a> are rising.<\/p>\n

BTC market cap daily performance chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

Moreover, Bitcoin has decoupled from United States stocks for the first time in a year, with its price rising about 65% versus S&P 500\u2019s 2.5% gains and Nasdaq\u2019s 15% decline in 2023.\u00a0<\/p>\n

SPX and NDAQ YTD performance vs. BTC\/USD. Source: TradingView\u00a0<\/em><\/figcaption><\/figure>\n

Wall Street banks lose $100B in 2023<\/h2>\n

The six largest U.S. banks \u2014 JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Morgan Stanley and Goldman Sachs \u2014 have lost nearly $100 billion in market valuation since the year\u2019s start, according<\/a> to data gathered by CompaniesMarketCap.com.<\/p>\n

Bank of America\u2019s stock is the worst performer among the Wall Street banking players, with a nearly 17% YTD drop in valuation. Goldman Sachs trails with an almost 12% YTD decrease, followed by Wells Fargo (9.74%), JPMorgan Chase (6.59%), Citi (3.62%) and Morgan Stanley (0.84%).<\/p>\n

Wall Street banks YTD performance. Source: TradingView<\/em><\/figcaption><\/figure>\n

U.S. bank valuations have slid amid the ongoing U.S. regional banking collapse.\u00a0That includes the announcement last week that Silvergate, a crypto-friendly bank, was closing its doors<\/a>, followed by regulators’ subsequent takeover of Signature Bank<\/a> and Silicon Valley Bank<\/a>.<\/p>\n

Related:\u00a0Breaking: SVB Financial Group files for Chapter 11 bankruptcy<\/a><\/em><\/strong><\/p>\n

The crisis further expanded with the near-collapse of First Republic Bank, which was saved at the last moment through a $30 billion combined injection<\/a> by Wells Fargo, JPMorgan Chase, Bank of America and Citigroup \u2014 among others.<\/p>\n

Cyprus and Greece deja vu?<\/h2>\n

The rise of Bitcoin in the face of a growing U.S. banking crisis is similar to how it reacted during banking collapses in Cyprus and Greece.<\/p>\n

BTC\u2019s price grew by up to 5,000% amid the Cyprus financial crisis in 2013, prompted by the exposure of Cypriot banks<\/a> to overleveraged regional real-estate companies.<\/p>\n

BTC\/USD performance during Cyprus banking crisis. Source: TradingView<\/em><\/figcaption><\/figure>\n

The situation was so dire in March 2013 that Cyprus authorities closed all banks to avoid a bank run.<\/p>\n

When Greece faced a similar crisis in 2015<\/a> and imposed capital controls on citizens to avoid a bank run, Bitcoin\u2019s price gained 150%.\u00a0<\/p>\n

BTC\/USD performance during the Greece banking crisis. Source: TradingView<\/em><\/figcaption><\/figure>\n

\u201cFears over the stability of the banking system, along with declining real interest rates, creates a good environment for Bitcoin to rebound,\u201d commented<\/a>\u00a0Ilan Solot, co-head of digital assets at London broker Marex, adding that the crypto \u201cis seen by some investors as a hedge against systemic risks.\u201c\u00a0<\/p>\n

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<\/div>\n


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The market capitalization of Bitcoin (BTC) has added $194 billion in 2023. Its 66% year-to-date (YTD) growth vastly outperforms top Wall Street bank stocks, particularly as fears of a global banking crisis are rising. BTC market cap daily performance chart. Source: TradingView Moreover, Bitcoin has decoupled from United States stocks for the first time in […]<\/p>\n","protected":false},"author":1,"featured_media":46561,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[40],"tags":[12027,1253,50,2221,1650,4078,219,905,114,904],"class_list":["post-46560","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-analysis","tag-100b","tag-banks","tag-bitcoin","tag-cap","tag-grows","tag-lose","tag-market","tag-street","tag-top","tag-wall"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2023\/03\/c0f10f00-8e75-4263-9132-5ce6ee504ed7.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/46560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=46560"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/46560\/revisions"}],"predecessor-version":[{"id":46562,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/46560\/revisions\/46562"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/46561"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46560"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}