Due to investors’ expectations that the bankruptcy of the First Republic and its subsequent takeover by JPMorgan Chase would put an end to the regional banking crisis. bitcoin And cryptocurrencies It started May with a decline.
“Banking Crisis Is Not Near End, Bitcoin Will Remain Resilient”
However, according to Bernstein analyst Gautam Chhugani, the havoc in the banking sector that has boosted Bitcoin over the past two months is “not near the end” and BTC will remain resilient in the coming months.
“Bitcoin and the crypto financial system were made for times like today,” Chhugani said in a note released Monday, highlighting “the collapse of traditional financial systems” and “principal questions regarding the fractional reserve business model of banks.”
“Crypto wasn’t just a bubble of the low-interest era (perhaps it was temporarily),” he added.
“Cryptocurrencies are emerging as a solution in the midst of economic collapse and as an alternative to centralized monetary systems,” the analyst said.
The analyst also said there has been a growing bearish rhetoric around the dollar, driven by concerns about the “ballooning” debts of the US government and the waning confidence of other countries in the US dollar as the world’s reserve currency.
“As the rhetoric about the weakening of the dollar increases, we believe that Bitcoin will emerge with a faster value than gold,” Chhugani said.
“We also believe that this will start a new crypto cycle and bring a new wave of innovation in crypto-based decentralized financial systems.”
Also, regulatory arguments against crypto in the US are weakening as Europe and Hong Kong adopt more progressive approaches.
*Not investment advice.
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