Bitcoin
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Turbulence in the banking system has led to a change in investors’ perceptions of safe assets. Custodia CEO Caitlin Long, in an interview with CNBC, noted that more and more market participants began to consider bitcoin as such.
“Many began to realize the instability of banks, for the first time turning their eyes to the first cryptocurrency. This is a scarce asset, which, like its counterparts, is insurance against the instability of the financial system,” she explained.
ARK Invest analysts recalled in a newsletter that cryptocurrencies could potentially offer an alternative to classic banking.
“Against the backdrop of the crisis of financial institutions in the US and Europe, the rise of bitcoin suggests that lax regulatory oversight has had no impact on the decentralized, transparent and auditable digital asset ecosystem. On the contrary, digital gold and other cryptocurrencies act as safe havens.” the document says.
Demand for more transparent, auditable and decentralized financial services has skyrocketed as digital assets are the solution to major problems, opacity and regulatory deficiencies TradFiexperts added.
CoinShares analyst James Butterfill told Decrypt that Bitcoin has not ceased to be one of the safe havens. Along with gold, it is performing brilliantly as the cycle of aggressive rate hikes is expected to end.
The specialist explained the weakness of the first cryptocurrency in the past by sensitivity to monetary policy, which is also typical for other safe-haven assets.
Kaiko Research Director Clara Medali noted the rise in the correlation between traditional and digital gold to its highest level since January. The expert pointed to the increase in the number of hodlers as confirmation of the recognition of bitcoin as a store of value.
Recall that the founder of BlockTower Capital, Ari Paul, called gold and the first cryptocurrency insurance against the collapse of traditional finance.
Robert Kiyosaki, author of the bestselling book Rich Dad Poor Dad and businessman, came to similar conclusions earlier.
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