How do you make sense of the sudden spike of Bitcoin and Eth, when the opposite was expected after a string of crypto-affiliated bank closings?

Silvergate, then SVB, then Signature bank. One crypto-affiliated bank after another closed down in the last two weeks. Just about everyone was holding their breath for what could happen this week.

And what happened? Bitcoin spiked 18% and Eth 15%. These are the highest numbers these two coins have seen in about 9 months.

How do you make sense of this behavior? In the past, Bitcoin/Eth were closely correlated with the wider market sentiment. Now? Not so much.

Bank stocks everywhere have been crashing. And out of the ashes, Bitcoin and Eth are rising, instead of following the negative news headlines.

The CPI numbers also came out and showed inflation slightly going down. While that’s good news, 6% is still a far cry from the goal of 2-3%. And we’re still in inflationary times, at least for the next year. Is this what bitcoin bumped, because it’s extra sensitive to even the smallest good news, in this case a slight haircut in inflation?

Or do you think this pump is due to a one time mass dump away from stablecoins, into bitcoin and Eth? Since stablecoins have been toppling over, one after another in since Luna.

Why are bitcoin and Eth pumping right now?