US bank turmoil has reinforced the long-term view of Crypto: Coinbase

US bank turmoil has reinforced the long-term view of Crypto: Coinbase

A recently published report by David Duong, head of institutional research for the leading American crypto exchange Coinbase, suggests that crypto is the solution to the point of failure in the existing financial system.

The researcher said that the recent US bank turmoil led to more people recognizing and appreciating the promise of an alternative to the system. In return, the development has reinforced the long -term prospects for digital assets.

bank turmoil have strengthened the crypto view

in the Report argued that bad asset liability management and a challenging interest rate environment in the United States would have led to the youngest banking crisis. The past two weeks have seen several US banks Switch off while others have to deal with liquidity problems.

"Overall we believe that the medium to long-term prospects for cryptocurrencies have been reinforced.

The banking crisis also extended to the European markets, with the Credit Suisse, the second largest bank in Switzerland, reach its target breakage. Interestingly, the crypto sector experienced remarkable growth in the course of continuing turbulence, which Duong partially attributed to technical reasons.

"In turn, cryptocurrencies have shown a certain resistance, sometimes for technical reasons. But we also believe that more people now appreciate the fundamental promise of values ​​to have an alternative to the error points that are inherent in the traditional financial system," he added.

Positioning for the next bull run

In addition, the coinbase researcher mentioned that the chaos could cause the Federal Reserve to make monetary policy decisions that affect the financial markets. Although the situation has a broad diversification of possible results, crypto companies could face the challenges of Fiat payment rails.

However, he believes that the cryptoscept will create appropriate redundancies over time to ensure smooth operation.

Meanwhile, Duong announced that Coinbase had increasingly recorded institutional crypto purchases in the past few weeks. Traditional and crypto-native hedge funds, private asset companies and traditional asset managers position themselves for the Fed to return the politics of the easy money that has driven the last bull run.

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