‘Pivotal Moment’ for Crypto After ‘Hyper-Speed’ Banking Crisis Spurs Bitcoin and Ethereum Price Pump
Bitcoin and cryptocurrencies have been thrust back into the spotlight by the recent banking crisis, sparking a wave of wild crypto price predictions.
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The price of Bitcoin has soared in the first three months of 2023, adding about 70% and helping the price of ethereum and other smaller cryptocurrencies soar ahead of what could be a $300 trillion “quantum leap.”
Now, as two of the world’s largest financial institutions quietly lay the groundwork for a future bitcoin price bullrun, Bernstein analysts have said the world is at a “pivotal moment” along “the road to hyper-bitcoinization.”
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“As we head toward another pivotal moment in monetary history, savers will also be looking for not only stability in nominal value, but if further misfortunes force the Fed to break again the ‘real value’ of the government currency,” Bernstein analysts Gautam Chhugani and Manas Agrawal wrote in a research note shared by tech investor Balaji Srinivasan – who has a $1 million stake due to the collapse of the US dollar in just a few months.
Last year, analysts at the $56 billion hedge fund Elliott Management warned that the world is “on the path to hyperinflation,” potentially leading to “global societal collapse and civil or international strife” due to the Federal Reserve’s ultra-loose monetary policy during the Covid pandemic.
The banking crisis that swept the U.S. and Europe last month has forced the Fed and other top central banks into new dollar liquidity measures — “Which many bitcoin believers have proposed as the last path to hyper-bitcoinization,” the Bernstein strategists wrote, adding: “We would watch this place.”
Meanwhile, US Treasury Secretary Janet Yellen has promised that all bank deposits will be protected by the government in the wake of Silicon Valley Bank’s sudden implosion, telling the Senate Finance Committee that “Americans can feel confident that their deposits will be there when they need them” — something the bitcoin and crypto community has pointed to as a sign of the system’s weakness.
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“Bitcoin’s bitcoin bullish momentum since the start of the year reflects renewed investor demand for the leading, most decentralized cryptocurrency,” Alex Adelman, CEO of bitcoin rewards app Lolli, said in an emailed statement.
“The banking crisis has drawn attention to bitcoin as a new way to store wealth that is free from centralized points of failure. Against the backdrop of a weakened banking sector, bitcoin’s decentralization is now more than ever a clear and powerful benefit and point of interest. .”
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