Bitcoin’s recent price rally has been driven by Americans seeking a safe haven in the cryptocurrency, according to an analysis by Matrixport. The recent failures of several banks in the US have exposed the limitations of the fractional reserve banking system, leading investors to consider alternative options like Bitcoin. The analysis showed that American buyers are leading the safe haven bid, with Bitcoin rallying by over 40% in just ten days, reaching a nine-month high above $28,000.
The report noted that since the dip on March 10, Bitcoin has rallied by +44%, with +31% of the rally being driven during US trading hours. Markus Thielen, head of research and strategy at Matrixport, said in a note to clients that the stress in the banking sector is not over, and that Americans are buying Bitcoins with both hands.
While Bitcoin is available to trade 24/7 worldwide, its price action varies through each 24-hour cycle depending on the news flow and macroeconomic data releases. In recent weeks, news of banking sector issues in the US has dominated the news flow, leading to a repricing of interest rate expectations lower. This has driven Bitcoin’s positive performance during US trading hours.
According to Matrixport, American hours have been a major source of bullish pressure since the beginning of the year, with Bitcoin up +66% year-to-date. During US trading hours, Bitcoin rallied 47%, while the cryptocurrency only rallied by +16% during trading hours in Asia. Bitcoin has barely broken a sweat during European trading hours – just +3%.
The analysis by Matrixport suggests that Bitcoin is becoming an increasingly attractive investment option for Americans seeking a safe haven amid economic uncertainty. As the stress in the banking sector continues, it is likely that more investors will turn to Bitcoin as a way to protect their wealth.
