Fast Take
Throughout the 2013 Cyprus monetary disaster, Bitcoin’s response supplied an early indication of its potential as a “risk-off” asset and different secure haven. The instability in Cyprus’s banking system was attributed to lax regulation throughout the sector and overextension amongst property builders, as reported by The Guardian.
Earlier than the disaster escalated, on March 16, Bitcoin’s worth was roughly $48, displaying a decline mirrored by three consecutive days of crimson candlesticks from March 14 to March 16. Nevertheless, because the disaster unfolded and Cypriot banks closed on March 18, Bitcoin surged to round $52.
This marked the start of a fast ascent, with Bitcoin skyrocketing over 77% to roughly $92 by March 28. This coincided with the formal announcement of a €10 billion bailout for Cyprus, resulting in the winding down of the nation’s second-largest financial institution.
Regardless of ending March 28 barely decrease at $82, Bitcoin’s surge throughout the month was distinctive — delivering a 173% return, its second-best month-to-month efficiency on file.
The weekly timeframes had been much more staggering, with returns of 52%, 29%, and 74% for weeks 11, 12, and 13 of 2013, respectively, in line with Coinglass.
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