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Cyprus bank crisis froze savings while Bitcoin surged from $47 to $265 in 2013.

Market News
13 Sep 2026
Bitcoin
View Source
Neutral
Cyprus bank crisis froze savings while Bitcoin surged from $47 to $265 in 2013.

In 2013, Cyprus faced a banking crisis that led to nearly two weeks of bank closures, frozen transfers, and cash rationing, severely restricting access to private savings. The bailout forced uninsured depositors to convert nearly half their deposits into shares, while the Bank of Cyprus survived but at great cost to investors. During this turmoil, Bitcoin's price skyrocketed from about $47 to $265, highlighting its appeal as a decentralized alternative to traditional banking. The crisis spurred lasting interest in Bitcoin, with institutions like the University of Nicosia adopting it for tuition payments, underscoring the broader question of who truly controls money when banks fail.

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