Will Bitcoin grow amid the US banking crisis?

Will Bitcoin grow amid the US banking crisis?

2023-05-10

Despite Jerome Powell's best efforts to calm the market, the banking crisis is not abating. This time, the shares of a large bank PacWest collapsed. Botkin at that time showed positive dynamics, despite the increase in the interest rate.

If we consider the 2008 crisis in the United States, it can be noted that bitcoin was created as a response to the problems of the global economy. Thus, crises and inconsistencies in monetary policy and the financial system can contribute to an increase in interest in bitcoin.

Today, it is increasingly possible to hear that regulators are accused of hypocrisy and attempts to strangle crypto-friendly banks in favor of political interests, while ordinary banks such as First Republic Bank receive state support.

Against the background of an increase in foreign debt and the continued depreciation of fiat, the prolongation of the banking crisis may generate increased investor interest in cryptocurrency, which will surpass other asset classes.

Despite the fact that bitcoin is not completely independent of the banking system and financial infrastructure, recently, during the crisis peaks, it was possible to observe the versatile dynamics of the stock market and the bitcoin exchange rate.

Given the cyclical nature of the first cryptocurrency and the proximity of halving, after which historical highs are updated, bitcoin can become an alternative investment strategy in the event of a banking crisis, since it does not depend on centralized financial institutions, and its value can be maintained despite changes in the market.

However, like any other investment decision, investing in bitcoin must be weighed taking into account your individual financial capabilities and risks.