Why This Top Financial Expert Is Saying ‘Buy Bitcoin’ Amid Looming Bank Failures
The traditional banking system is facing major challenges, and according to top financial expert Bernstein, Bitcoin (BTC) could be a savior.
Bernstein analysts foresee Bitcoin’s long-awaited mainstream adoption could be potentially triggered by the US banking crisis.
The analysts suggest that the current state of the banking system will fuel a “new crypto cycle,” driven by mass migration to self-custody wallets. In a note seen by CNBC, analysts Gautam Chhugani and Manas Agrawal noted:
“The safe haven signal will lead to a new crypto cycle, pushing digital wallets as on-chain savings accounts. The gap between Treasury rates and bank deposit rates will continue to hollow out banks, with weak balance sheets leading to another round of mass migration to money markets.”
According to Bernstein analysts, with recent events causing widespread financial uncertainty, investors are increasingly looking towards alternative investment options such as Bitcoin.
BTC Continues Its Uptrend
Despite the supposed buy signal, Bitcoin (BTC) hasn’t made any significant move yet. Instead, it has only seemed to picked up from its slowed-down uptrend in recent weeks. Over the past 24 hours, the top crypto has surged only 1.5% with a market price of $29,402, at the time of writing.
This gearing uptrend comes after a notable fall from the $30,000 region in recent weeks. So far, Bitcoin has a 24-hour range between a low of $28,748 and a high of $29,869. Alongside its price, the BTC market cap has also seen an uptrend. Its trading volume signals buying pressure indicating a possible continuous bullish trend.
Over the past week, Bitcoin’s market capitalization have surged from a low of $527 billion on April 22 to as high as $569 billion as of today. Its trading volume has also spiked from a daily trading volume of $19 billion to $23.3 billion, over the same period.
Implications Of The Banking Crisis On Bitcoin
According to Bernstein analysts, the growing banking crisis in the US could have significant implications for the future of Bitcoin. They predict that the crisis will cause another round of money printing and dollar debasement by the Federal Reserve.
This will once again bring Bitcoin back into the spotlight as digital gold. Cryptocurrency has long been touted as a hedge against inflation, and its value is often seen as an alternative to traditional safe-haven assets such as gold.
Notably, Bitcoin has since been publicized to be the future of finance and with the current state of the banking system, its potential to become the future of finance is becoming increasingly clear.
While traditional banks struggle with weak balance sheets and low-interest rates, Bitcoin continues to gain value and recognition as a legitimate investment option. Its decentralized nature and lack of reliance on traditional financial institutions make it an attractive option for investors looking to protect their assets in times of economic uncertainty.
With Bernstein analysts predicting a new crypto cycle and recommending that investors “buy Bitcoin,” it’s safe to say that the cryptocurrency is set to play an increasingly important role in the future of finance.
Featured image from iStock, Chart from TradingView
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Text source: NewsBTC
