Has bitcoin benefited from the banking crisis? Not in the way its fans hoped

economictimes.indiatimes.com:

bitcoin soared above $25,000, reaching a threshold the digital currency hadn’t touched since June. This week, bitcoin reached nearly $30,000, up 70% for the year. Bitcoin proponents seized on the price rise to argue that the banking crisis was prompting investors to convert traditional currencies into digital coins. One crypto executive hailed the bank failures as “the end of the USD and the dawn of hyperbitcoinization.” A company that markets bitcoin to investors started putting references to the bank runs in its promotional materials. But despite the fanfare, there is little evidence that the recent banking collapse has generated widespread support for bitcoin as a financial alternative. Instead, the surge in bitcoin’s price was driven by a range of financial trends that have little to do with the technology’s philosophical underpinnings, analysts said. The reasons for the surge include growing optimism that the Federal Reserve may pause interest rate increases, as well as increasing concerns about the safety of so-called stablecoins, a type of cryptocurrency intended to maintain a price of $1.

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“Is there widespread interest in and growth coming into the space? Is it a lot of new money?” asked Ed Moya, a crypto analyst at the trading firm OANDA. “It doesn’t really seem like that’s happening.” Bitcoin’s recent rise is also a result of low liquidity, a measure of how easy it is to buy and sell a digital