Bitcoin surges 5% amid banker uncertainty

Bitcoin has advanced as many investors have switched to digital currency amid the spread of the crisis in the traditional banking sector.

Bitcoin advanced 5% to $28,378.34. Earlier, Bitcoin hit $28,554.06, a nine-month high.

The value of all bitcoins in the market has gained about 26 billion dollars. Bitcoin’s rally comes amid imbalances in the global banking sector caused by the stagnation of SVB in the U.S. While U.S. regulators scrambled to claw back deposits at SVB, concerns continued to grow about weaknesses in regional banks in the U.S.A

In Europe, the Swiss bank took on Credit Suisse. It has been in the spotlight since SVB’s failure. After its biggest partner, Saudi National Bank said it could not provide further economical support to the lender due to regulatory bans.

UBS has agreed to buy Credit Suisse for 3 billion Swiss francs in a deal brokered partly by Swiss regulators to stop the crisis from spreading across the global banking sector.

The digital gold race: Is Bitcoin still leading the way?

Bitcoin proponents often refer to it as “digital gold” and refer to it as a store of value, especially during times of global turmoil and uncorrelated with levels of other assets. However, Bitcoin has more often traded on par with stocks, especially with the tech-heavy Nasdaq.

But there are suggestions that Bitcoin’s price action is lagging behind stocks. While gold has advanced about 8.9% this year, Bitcoin has advanced more than 69.5%.

Interestingly, other cryptocurrencies did not experience the same jump as Bitcoin on Monday. Ether traded at different levels. Proponents do not view other cryptocurrencies as digital gold in the same way that Bitcoin is.