Cyprus Banking Crisis Triggers Bitcoin Surge in 2013

Cyprus faced a severe banking crisis in 2013 that lasted nearly two weeks. During this time, banks were closed, transfers were frozen, and cash was rationed. The bailout forced uninsured depositors to convert nearly half their deposits into shares.

The Bank of Cyprus survived but at great cost to investors. Meanwhile, the price of Bitcoin skyrocketed from about $47 to $265. This significant increase highlighted its appeal as a decentralized alternative to traditional banking.