Crypto decouples from global financial markets amid banking sector gloom

The collapse of several banks in the last two weeks has spread fears of contagion in global markets, but crypto markets saw a bull run, with Bitcoin climbing to its nine-month high on Monday

Opposite to the sentiments in the global markets, prices of various crypto assets surged in the last two weeks. At $27,957 on Tuesday, Bitcoin was trading at its highest since June 2022. The total market cap of the crypto assets, at $1.16 trillion, was the highest since August 2022.

"Last week, crypto decoupled from the traditional financial world as crypto prices rallied despite the banking crisis. Many observers see this as a watershed moment in crypto's evolution as an asset class," said Parth Chaturvedi, crypto ecosystem lead at crypto exchange CoinSwitch.

In the last two weeks, several major global banks