• The banking crisis in America and Europe has been two-fold, putting people in a state of fear that another big financial crisis is coming and creating a “safe haven” status for bitcoin.
• First Republic Bank recently failed, making it the third major bank failure this year.
• Many experts believe that bitcoin and other digital currencies can benefit from the current banking crisis, providing an opportunity to rise as a result of its transparent and decentralized nature.
First Republic Bank is Gone
Early last month, regulators acquired First Republic Bank and circulated most of its assets and deposits to institutions like JPMorgan Chase. This marks the third major bank failure this year, causing many to think the days of the 2008 Great Recession are on their way back.
What Will Happen to BTC?
Alex Thorn – head of firmwide research at Galaxy – commented in a recent interview: It’s unclear whether the banking crisis narrative can continue to be a boon for bitcoin. Overall, the market lacks clear positive near-term catalysts, with supply issues overhanging bitcoin… Bitcoin accumulation by small addresses is outpacing issuance, and we expect Ethereum staking to increase, each of which provides a supportive supply narrative. Outside of crypto-native factors, we expect a back-of-the-year macro environment to be characterized by tightening, recession, and an expanding multipolarity in the global economy — all of which can be supportive of gold and bitcoin.
The Banking Crisis
The banking crisis in America and Europe has been two-fold in many ways. On one hand it’s put people into fear that another big financial crisis like what was witnessed 14 or 15 years ago is coming again; however on the other hand it can be argued that this same crisis has brought about a new “safe haven” status for bitcoin and many of its digital cronies — resulting in currencies like bitcoin rising like they never did before with more people backing these assets as means for keeping wealth stable during this period of economic strife.
What Do Experts Think?
Thorn continued with: Bitcoin and ether started 2023 inorganically cheap allowing for plenty room to move higher off low base effect; A widening banking crisis became evident March — contrasting with bitcoins transparent decentralized nature providing further leg up; We expect macro environment characterized by tightening recession expanding global multipolarity all supportive gold bitcoin.
Conclusion
Overall while it remains unclear whether or not this banking crises could become boon for Bitcoin what is certain is that more people are beginning turn towards BTC as safe haven asset amid economic uncertainties surrounding world today