$12,000,000,000 Asset Manager Says Investors Flock to Bitcoin and Crypto Amid Global Banking Fallout
CEO of $12 billion financial advisory firm deVere Group, Nigel Green, says investors are seeking alternatives like Bitcoin and crypto as the United States enters a new era of quantitative easing.
In a blog post, Green says the Treasury Department’s actions following the collapse of Silicon Valley Bank represent a new wave of money printing and fiscal stimulus that has investors looking for ways to preserve their capital.
Green highlights Bitcoin’s scarce supply of 21 million coins as one of the key features that make it appealing in the current economic environment.
“Bitcoin surged in price following the recent collapse of Silicon Valley Bank and Signature Bank, with the banking crisis acting as a springboard for the world’s largest cryptocurrency, as global investors seek safe haven, alternative currencies…
In essence, the SVB rescue package is a new form of quantitative easing (QE). This increases the supply of dollars in circulation, which can lead to a fall in the value of the dollar compared to other currencies, as the increased supply can reduce purchasing power.
Consequently, this drives investors to seek alternatives such as Bitcoin, which have a limited supply.”
According to Green, the global banking crisis poses a major threat to financial stability and represents a historic moment for the flagship crypto asset.
“Due to the looming risk to financial stability, we now estimate that the Fed will halt its aggressive rate hike agenda, which is bullish for Bitcoin. Reduced interest rates make borrowing cheaper, which could lead to increased spending and investment, as well as higher demand for BTC as investors seek alternatives with the potential for higher returns.
In fact, the fallout from this latest banking crisis appears to serve as a starting point for a larger goal for the world’s largest crypto. It is a historic springboard event.”
You can check out Green’s full post here.
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