How Crypto Has Stayed in the Green During Banking Crisis

Through regulatory actions and pressing macro conditions, bitcoin has remained remarkably resilient


Novikov Aleksey/Shutterstock modified by Blockworks


Bitcoin and ether have managed to stay in the green throughout the current banking crisis, even as regulatory pressures continue to mount. Trying to determine why and how bitcoin especially has remained resilient is a nearly impossible task, analysts said, but there are key factors investors should keep an eye on. 

Bitcoin (BTC) is up more than 20% over the past month, while ether (ETH) has gained around 10%. Market research firm Global Macro said its highest performing index for the week has been its bitcoin index, which is up 13% week over week. 

Analysts say macro conditions are helping support crypto for the time being. 

The Federal Reserve’s decision to bump interest rates 25 basis points Wednesday was followed by promising remarks from Chair Jerome Powell that should the banking crisis continue and contaminate other areas of the economy, the central bank will be forced to take a more aggressive stance. 

Markets like the sound of lower hikes, Noelle Acheson, author of Crypto is Macro Now and former head of market insights at Genesis, said.

“The persistent and spreading concerns plaguing the banking industry are showing in fed funds expectations,” Acheson said. 

Fed funds futures are dramatically lower than the central bank’s official year-end target of 5.1%. Markets are anticipating ending 2023 at around 4%. 

“This is also seen in the continued drops in key US treasury yields,” Acheson added. “The 10-year and the 2-year are now back to where they were in early September, when the fed funds range was still 2.25-2.50%.”

However, investors still need to keep an eye on stocks, analysts warn, because a major sell-off is bound to impact crypto markets. 

“The banking crisis, which caused the market to price in rate cuts starting in the summer, has had little knock-on effect on crypto (so far),” analysts from Macro Hive wrote in a note Friday. “The short-term pause in BTC and ETH is technically a correction, but if equities break down meaningfully, crypto will struggle to remain buoyant as investors source liquidity from everywhere.”

Recent regulatory developments — Coinbase’s Wells notice, Do Kwon’s arrest and indictment, and charges against SushiSwap — should maybe have crypto investors wary, the analysts say.

For now, though, volatility and bitcoin dominance indicators show that crypto, particularly BTC, is holding firm.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png


Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.



Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space


Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?


Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month


It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet


Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend


Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million