Analysts From Bernstein see "Ideal Conditions" for Growth in the Cryptocurrency Market.
The situation that has arisen in the banking sector of the United States is an appropriate moment for a decentralized financial system to become an alternative to traditional banks, according to experts RBK reports
Analysts from investment company Bernstein believe that the cryptocurrency market is ready for growth in the face of difficulties that the US banking system has encountered. The current situation is the perfect condition for a decentralized financial system to become an alternative to traditional banks, according to the report.
Following a series of banking crashes in early March, ideal conditions were created in financial markets for the decentralized financial system to be highlighted as an alternative and for further promotion of cryptocurrency markets, according to Bernstein.
Analysts noted that initially the cause of the crashes of Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank was attributed to the fact that these banks worked with cryptocurrency companies, and their problems were only related to their internal activities.
However, following the SVB crash on March 11, problems began to arise at First Republic Bank (FRC): its shares fell by 65%. On March 12, FRC announced that it had gained access to additional liquidity from the Fed and the largest banks in the United States, including JPMorgan Chase and Bank of America, for a total of $70 billion.
The package of measures to rescue deposits at First Republic Bank by several institutions should make it clear that this is a "common banking problem" and that cryptocurrencies are not to blame, according to the Bernstein report.
"This is the perfect situation for Bitcoin, Ethereum, and other decentralized financial systems to stand out as an alternative system separate from the traditional centralized banking system," experts believe.
Access to cryptocurrencies through the banking system in the United States may weaken, analysts suggest, but it remains stable at the international level, including through over-the-counter centers in Asia and Europe. Such centers in the US also appear to be operating without disruptions, the report's authors note.
Today, the well-known crypto prophet and probably one of the most accurate predictors of the Bitcoin price, Davincij15 aka Davinci, very simply and convincingly explained why Bitcoin will be worth a million dollars per coin within 3-6 months. His explanation makes it clear why Balaji Srinivasan, the former CTO of Coinbase, who is ready to bet a million dollars against anyone who does not believe in Bitcoin for a million dollars in the next 90 days, thinks the same way.
The amount of analytics in serious economic media justifying and substantiating the reality of this forecast has been growing daily. Naturally, everyone expresses the future price of Bitcoin in the most stable world fiat currency: the US dollar.
It only remains to understand what needs to happen to the dollar for Bitcoin to skyrocket to the moon in three months. Perhaps the purchasing power of the dollar may sharply decline. But to what extent? Exactly by 40 times!
Because if this happens, the dollar will lose not only the function of preserving the value of capital (a means of saving), but also its most important global function - a measure of value (a means of measuring goods and services). All goods, from precious metals to oil and other raw materials, will begin to be valued in Bitcoin.
And this is guaranteed to happen if Bitcoin reaches a price of a million dollars. No flock survives with two leaders, no country has two presidents, and no country has two national currencies. Nothing in the world could compare to the US dollar. But times are changing quickly. Two captains will sink any ship.