Bitcoin’s price rally over the past few weeks has once again proved its position as a hedge against economic conditions.
On Tuesday, the famous YouTuber Scott Melker hosted a Twitter Spaces session titled “Short the Banks, Long Bitcoin With Michael Saylor.” Most of the session focused on a discussion with MicroStrategy founder Michael Saylor about Bitcoin’s journey over the past year.
Bitcoin Having a “Come to Jesus” Moment
Saylor believes the recent uptrend in Bitcoin price has nothing to do with mainstream adoption, as is usually the case with many other cryptocurrencies. He explains that crypto enthusiasts and institutions who disagreed on several crypto-related matters now have common ground to stand upon — Bitcoin.
“I don’t think that the Bitcoin rally is due to mainstream adoption of Bitcoin. I think the Bitcoin rally is due to the crypto adoption of Bitcoin [. . .] I think when FTX melted, it was a come to Jesus moment for crypto people because they [had to agree that] Bitcoin is good,” he said.
The MicroStrategy boss outlined several events that have proved Bitcoin to be the safest haven from financial meltdowns within the traditional banking system and the crypto industry.
Among his top mentions were the catastrophic failures of three top U.S. banks, Silicon Valley, Silvergate, and Signature. The fallout of these banking institutions was a news headline two weeks ago. Joining the bandwagon of failed banking firms is the Switzerland-based bank Credit Suisse.
According to Saylor, another factor that aided Bitcoin’s bull run was the fallout of crypto platforms such as FTX, BlockFi, Celsius, and Terraform Labs. Other events that have troubled the crypto ecosystem include the stablecoin crackdown, hedge funds collapse, and several others.
Another characteristic that Saylor believes has exacerbated the distrust for traditional finance, which “holds 100% of the world’s money,” is the rate hike by the Fed. Records show that the act has resulted in a flight to Bitcoin as a haven.
Bitcoin Holds $28k in Latest Rally
After struggling around a price range of $20,000 for several months, Bitcoin’s price has finally begun to pick up. Current data shows that the asset traded at $28,100.
Interestingly, this rally above $20k began in mid-March when the bankruptcy of the U.S. banks came to light.
