Bitcoin market cap grows 60% in 2023 as top Wall Street banks lose $100 billion

The market value of Bitcoin (BTC) has added $194 billion by 2023. Its 66% year-to-date (YTD) growth is significantly outpacing top Wall Street banking stocks, especially as fears of a global banking crisis are rising.

BTC market cap chart for daily performance. Source: TradingView

Also, Bitcoin is decoupled from US stocks for the first time in a year, with the price up about 65% compared to the S&P 500’s 2.5% gains and the Nasdaq’s 15% decline in 2023.

SPX and NDAQ YTD YTD vs. BTC/USD. Source: TradingView

Wall Street banks lose 100 billion USD in 2023

The six biggest U.S. banks — JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Morgan Stanley and Goldman Sachs — have lost nearly $100 billion in market value since the start of the year, according to data compiled by

Bank of America’s stock is the worst performer among Wall Street bankers, with a nearly 17% decline in valuation. Goldman Sachs trails, down nearly 12% YTD, followed by Wells Fargo (9.74%), JPMorgan Chase (6.59%), Citi (3.62%) and Morgan Stanley (0.84%).

Wall Street banks’ YTD performance. Source: TradingView

US bank valuations have fallen amid the ongoing US regional banking meltdown. That includes the announcement last week that Silvergate, a crypto-friendly bank, was closing its doors, followed by regulators’ subsequent takeovers of Signature Bank and Silicon Valley Bank.

Related: Breaking: SVB Financial Group files for Chapter 11 bankruptcy

The crisis widened further with the near-collapse of First Republic Bank, which was saved at the last minute by a combined $30 billion injection from Wells Fargo, JPMorgan Chase, Bank of America and Citigroup — among others.

Cyprus and Greece deja vu?

The emergence of Bitcoin in the face of a growing US banking crisis is similar to how it reacted during banking collapses in Cyprus and Greece.

BTC’s price grew by up to 5,000% amid Cyprus’ financial crisis in 2013, prompted by Cypriot banks’ exposure to excess regional property companies.

BTC/USD performance during Cyprus banking crisis. Source: TradingView

The situation was so serious in March 2013 that the Cypriot authorities closed all banks to avoid a bank run.

When Greece faced a similar crisis in 2015 and imposed capital controls on citizens to avoid a bank run, Bitcoin’s price increased by 150%.

BTC/USD performance during the Greek banking crisis. Source: TradingView

“Fears about the stability of the banking system, together with falling real interest rates, create a good environment for Bitcoin to rise,” commented Ilan Solot, co-head of digital assets at London broker Marex, adding that the crypto “is seen by some investors as a hedge against systemic risks.”

This article does not contain investment advice or recommendations. Any investment and trading move involves risk and readers should do their own research when making a decision.

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