Bitcoin could thrive in the middle of the US banking crisis, demands financial advisor Bernstein

Bitcoin could thrive in the middle of the US banking crisis, demands financial advisor Bernstein

Analysts from Bernstein Private Wealth Manager believe that the shattering banking system in the United States will benefit from the introduction of Bitcoin and may increase the price of the financial value.

The experts continued and advised people to invest in BTC, which could soon enter into a new bull run due to the shocked conditions of traditional finances.

weak banks could drive BTC up

analysts Gautam Chhugani and Manas Agrawal Believe The banking crisis in America could exacerbate in the future. In their view, the numerous banking breakdowns could dissuade investors from traditional financing and trigger a mainstream acceptance and a new bull run for BTC.

"The signal of the safe port leads to a new crypto cycle, the digital wallet is promoted as on-chain-saving accounts. The discrepancy between the interest for government bonds and interest for bank deposits will continue to reopen the banks, with weak balance sheets for another round of mass migration will lead to the money markets. "

Remember that the US authorities PRESTERVER-SPACES = "True"> switch off Silvergate Capital, Signature Bank and Silicon Valley Bank (SVB) after they had announced serious liquidity difficulties.

The concern about the possible contagion of the sector recently increased after the First Republic Bank (one of the 20 largest financial institutions in the USA with a managed assets of over 200 billion US dollar) saw its shares crashed to record lows. The decline of 55 % (on a weekly basis) took place shortly after the company published its disappointing winning report for the first quarter.

Bernstein's analysts also expect that the Federal Reserve will start another money pressure campaign to try to solve the banking problems. They asked investors to buy Bitcoin, as this could restore the inheritance of assets as digital gold.

"To save the ship, the FED has to fall back onto dollar devaluation and money pressure and bring back the role of Bitcoin as a digital gold."

The rise of BTC in the middle of the turbulence

Despite the initial shock moments, the price of primary cryptocurrency has actually increased considerably during the youngest banking disaster. He rose to $ 28,500 a few days after the collapse of the SVB and continued his increase the following month.

The asset seems to be inclined to develop well in situations in which traditional finances are confronted with significant problems. Finally, it was created during the last massive currency crisis (2008) caused by banks, many of which had to be collapsed and revived.

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