In the last 24 hours, Bitcoin has increased by 4% and has surpassed $28,000, which is the first time it has reached this value since last June. Some traders view Bitcoin as a hedge against the traditional banking system that has recently experienced issues, such as the collapse of Silicon Valley Bank and regulators' takeover of Signature Bank. The Federal Reserve, along with other major central banks, announced on Sunday that they will work to ensure a steady flow of the US dollar, which is a dominant reserve currency, in the global financial system. Bitcoin has gone up by 25% this month until Sunday, which is a significant increase.
The Federal Deposit Insurance Corp. (FDIC) announced on Sunday that Flagstar Bank, a subsidiary of New York Community Bancorp, will take over non-crypto-related deposits held by Signature Bank, which is now called Signature Bridge Bank. Except for depositors associated with the digital banking business, Signature Bridge Bank's depositors will automatically become depositors of Flagstar, and the FDIC will continue to insure them up to the insurance limit. Flagstar Bank's bid didn't include $4 billion of deposits associated with the former Signature Bank's digital banking business.
The increase in the nominal value of open interest, which is the dollar value locked in the number of open bitcoin futures contracts, shows a rise in speculative interest in the market and potential for price volatility. Coinglass data reveals that open interest's nominal value has reached a yearly high of $12 billion, marking a 7% increase this month. An increase in open interest signifies that new money is coming into the market, but it doesn't reveal much about whether traders are getting into position for price gains or losses. In Bitcoin's case, the new money seems to be betting on price gains as the funding rate, or the cost of holding bullish long/bearish short positions, has flipped into the green after spending most of the early parts of the Asian trading day in the red.