Bitcoin price is soaring at this very moment, now above $43,000 and potentially aiming much higher with a spot ETF approval almost a certainty.
While an all-time high in USD terms is still more than $20,000 away, the top cryptocurrency by market cap is about to set a new record high against its arch-nemesis: the banking system.
Bitcoin Was Built To Win Against The Banking System
Bitcoin was born out of the 2008 Great Financial Crisis. Included in the Genesis block that started the Bitcoin blockchain is a headline from The Times speaking to bank bailouts at the time.
While central bankers print money at a whim and inflate the money supply, there will ever only be 21 million BTC. 15 years later, Satoshi’s invention is winning in the war against the traditional banking system.
Since the start of the year, there has been weakness in the banking sector due to economic distress, rising interest rates, and a flight of capital from regional banks. The weakness in banks and strength in Bitcoin recently could send BTC versus banks to new all-time highs.
BTCUSD Versus BKX Flirts With New All-Time Highs
Putting BTCUSD up against the KBW Nasdaq Bank Index, representing the 24 largest “national money centers, regional banks and thrift institutions,” we can see that Bitcoin is poised to make new all-time highs.
While the dollar has been strong in 2022 and 2023, the banking sector has not, hence the discrepancy between BTC trading against the BKX and USD.
In the past, however, all-time highs in the BKX has translated into new record highs on the dollar trading pair, so the price action remains significant.
Bitcoin price is currently at $43,700 and climbing, making all-time highs about $25,000 away still. But with an ETF on the way, BTCUSD could catch up soon enough.