An American financial company rating agency downgraded the rating of the US banking system amid the downfall of crypto-friendly US banks.
Over the last two weeks, US citizens saw the downfall of several banks. The majority of the failed banks were inclined toward the crypto sector. Many crypto critics claimed that it was all about the failure of the crypto companies, not the system of the US banks.
On 14 March 2023, Moody’s, a holding company for an American credit rating agency, rated the rating of the US banking system from “stable” to “negative.”
The report noted stock trade prices of the majority of the US banks are standing strong despite this critical situation. In particular, the SPDR Bank exchange-traded fund rose nearly 6.5% in morning trade.
Moody’s report claimed that the US economy may face a significant negative impact and further it will bring additional pressure on the banks.
Bitcoin is solution
Many Bitcoin & Crypto proponents said that Bitcoin was created in 2008 to fight against those situations through which US banks are currently going.
According to a Crypto Twitter user @luke_broyles, people should go with bitcoin investment because it will go up without a downfall.
Recently Trezor Bitcoin analyst Josef Tětek said the recent 10%+ pump in the Bitcoin price is purely a result of the downfall of the US banks.
“Banks no longer hold our money, but lend it out and buy volatile assets with it. Depositors are, in fact, the banks’ creditors. Understandably, people are looking for alternatives such as Bitcoin.”
The current trade price of Bitcoin is $24,836 & this trade price is 12% high over the last 7 days of trade price.