In the past months, we had 3 of the 4 biggest banking collapses. In such an extraordinary time, Crypto will be moving in extraordinary ways. So be prepared.

This year so far has been very exciting, especially for us in Crypto as we did not only have a nearly 100% rally off lows, but we even proceeded to rally during the most extraordinary times we possibly saw. Many usually say that we can not predict anything last years as we are in a situations Crypto is seeing for the first time, as an ongoing global recession last and this year it is the same.

Just that this year we are having a replay of the 2008 banking collapses, with medium and small-sized banks collapsing left and right. Crypto never saw that happen before and especially not in that magnitude:

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Tweet from Macro Dose about biggest banking failures (adjusted for inflation)

During the last few months, we have had three of the four biggest banking collapses. We started with SVB as the new biggest banking collapse (un-adjusted for inflation), then it kicked off the Signature bank being shut down by authorities in its contagion effect. Now it has taken another prey, the long-struggling First Republic Bank has collapses after being over 90% down this year.

The last time, a few months ago, when banks collapsed Bitcoin rallied sharply as people started seeing it as a bank hedge for the first time in it‘s history. Which is a perfect close to the circle, as Bitcoin got invented in the first place by Satoshi Nakamoto as a reaction to the 2008 banking crisis and the countless bail-outs by the government with no responsibility taken.

Now extraordinary times will require extraordinary price movements, anything can happen. We could go further up as people hedge into Bitcoin or a global financial crisis like in 2008 kicks off and even Crypto plummets down.

Stay safe out there and just as Sun Tzu said: “According to as circumstances are favorable, one should modify ones plans.“