Key Points
- Bitcoin Surpasses $28,000 as Investors Seek Alternatives to Conventional Banking
- New York Community Bank Steps In to Secure Signature Bank’s Non-Crypto Deposits
- Bitcoin Futures’ Open Interest Reaches an Impressive $12 Billion Annual High
In today’s cryptocurrency news roundup, we’ll discuss Bitcoin’s impressive leap above the $28,000 mark, the shift in the traditional banking system, and the growing interest in Bitcoin futures. So, buckle up and get ready to explore the exciting world of crypto!
Bitcoin has once again crossed the $28,000 threshold, a level unseen since last June, as traders increasingly view the cryptocurrency as a hedge against the traditional banking system. With recent events like the collapse of Silicon Valley Bank and regulators taking over Signature Bank, it’s no wonder some investors are looking for alternatives. Furthermore, Bitcoin’s value has surged by 25% this month alone, a clear indication of its growing momentum.
In other banking news, New York Community Bancorp’s subsidiary Flagstar Bank will assume non-crypto-related deposits previously held by the now-transformed Signature Bridge Bank. The Federal Deposit Insurance Corp. (FDIC) announced in a recent press release that depositors – excluding those related to the digital banking business – would automatically become Flagstar Bank customers and continue to enjoy FDIC insurance up to the specified limit. It’s worth noting that Flagstar Bank’s bid did not include the $4 billion of deposits associated with the former Signature Bank’s digital banking business.
Lastly, let’s talk about the increasing interest in Bitcoin futures. Data from Coinglass reveals that the nominal value of open interest in Bitcoin futures contracts has reached a yearly high of $12 billion, representing a 7% increase this month. This uptick in open interest signifies an influx of new money into the market. While it doesn’t necessarily indicate traders’ price expectations, the funding rate for holding bullish long/bearish short positions has turned positive, suggesting that the new money is betting on price gains.
Conclusion: As Bitcoin soars past $28,000 and the traditional banking system faces challenges, it’s an exciting time to keep an eye on the ever-evolving world of cryptocurrencies. With increased interest in Bitcoin futures and growing skepticism towards traditional banks, it seems the crypto rollercoaster ride is far from over. So, hold on tight and don’t forget to enjoy the thrilling twists and turns along the way!
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