How Crypto Has Stayed in the Green During Banking Crisis

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

article-image

Novikov Aleksey/Shutterstock modified by Blockworks

share

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.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

recent research

Research Report Templates.png

Research

Content Delivery Networks (CDNs) represent low-hanging fruit in a massive market ripe for Web3-driven disruption. The global CDN market was valued at ~$28B in 2024, and is projected to surpass $140B by 2034, (18.75% CAGR) underscoring the immense demand for efficient content delivery.

article-image

Sponsored

Connect in one click from any device to help build a verifiable world and earn rewards

article-image

The Flippening was always a meme, but for a moment it wasn’t so funny

article-image

Frachtis is focused on pre-seed and seed rounds in both consumer apps and AI

article-image

Markets look forward, even when we can’t see past the news

article-image

Solana’s price run might stall as ETH gains institutional favor

article-image

The soccer club is using the XRP-compatible Root blockchain and is expected to release a mobile racing game, too