Ever since the failure of Silicon Valley Bank, the price of Bitcoin has seen a bullish trend. Just before the failure of SVB, Bitcoin was trading at $19,600. As soon as the failure of SVB was announced, Bitcoin started to see a continuous price rise and traded above $20,000 for most of the weekend.

By March 13 (Monday), the price of Bitcoin was at around $22,300. It seemed like the investors were waiting for the market to reopen on Monday, as the price of Bitcoin soared to $26,500 within 24 hours, and the price is still increasing.

When it comes to the price of an asset, the narrative driving the price matters a lot. So, what was the narrative behind the 35% rise in Bitcoin’s price this time around? Well, there are lots of things behind the rise, but let’s discuss a few important ones.

Continuous Bank Failures

Bitcoin’s price fluctuation history is liked by various banks. So, we can’t ignore the current bank failures when discussing the factors behind Bitcoin’s current price hike. The banks linked to cryptocurrency projects are failing, and the failure is not because of Bitcoin. This is the main reason why the price of Bitcoin is increasing while the banks fail.

The reasons for the recent failure of the three banks are still unknown. SVB failed because it failed to maintain its balance sheet and risks related to its investments. These failures caused the old-fashioned run on deposits, which ultimately led to the failure of SVB.

Silvergate failure was caused because of its FHLB loan. Upon failure to manage its finances, Silvergate filed for bankruptcy.

Signature bank, which is the third bank to fail in recent times, failed because of the lack of confidence of investors in its leadership.

In addition to these three banks, the whole banking sector is going through a crisis. Credit Suisse and First Republic bank crisis are good examples of the current banking crisis. Banks supporting their competitors in this crisis tell us that they have contagion-related fears.

One thing the experts are sure about is that cryptocurrency and Bitcoin, in particular, have nothing to do with the banking crisis. It is apparently due to the pressure of the fractional reserve banking system because of the increasing interest rates.

All of the above-mentioned facts create the narrative that banks are failing. Intriguing for investors to invest their money in Bitcoin instead of the traditional financial market.

Volatility in the Stablecoin Market

Since the stablecoin USDC was pegged to the US dollar through its fiat reserves, the failure of SVB and Signature bank caused the USDC stablecoin to lose its peg against the US dollar. The failing stablecoin market is another reason behind Bitcoin’s current bullish run.