deVere Group CEO: Bitcoin rises amid banking crisis and money printing, becoming a safe haven
In a recent blog post, Nigel Green, CEO of deVere Group, “one of the world’s largest independent international financial consultants,” discussed the rise in Bitcoin price following the collapse of Silicon Valley Bank and Signature Bank. According to Green, the banking crisis has acted as a catalyst for the world’s largest cryptocurrency, with investors seeking safe haven alternatives.
Nigel Green claims that Bitcoin’s price experienced an increase of up to 20% in the wake of the second and third largest bank failures in US history, leading to widespread concern among global investors. He suggests that the collapse of Silicon Valley Bank triggered fears of a contagion effect in the banking system, which, according to some analysts, is weighed down by continuous interest rate increases. Green also highlights that Bitcoin breached the $26,000 level following the US Consumer Price Index, indicating a 6% year-over-year inflation increase.
Green mentioned that Bitcoin has previously demonstrated its safe-haven qualities during periods of economic uncertainty, such as the 2020 pandemic when investors sought alternative assets to protect their wealth. In addition, the emergency measures announced by the US Treasury Department and the Federal Reserve have also driven investor interest in alternative currencies.
The DeVere Group CEO characterizes the Silicon Valley Bank rescue package as a new form of quantitative easing (QE), which he claims could lead to an increased supply of dollars in circulation. This, in turn, can result in a reduced dollar value relative to other currencies, prompting investors to explore alternatives such as Bitcoin, known for its limited supply. Green suggests that the world may be moving away from a dollar-dominated system due to high debt levels and massive money printing, causing a drop in the dollar’s long-term value.
As investors search for alternatives, cryptocurrencies are increasingly competing with traditional currencies, leading to a decline in the dominance of leading international currencies. Green predicts that the Federal Reserve will halt its aggressive rate hike agenda due to financial stability risks, which is bullish for Bitcoin. Lower interest rates could lead to increased spending and investment and higher demand for BTC as investors seek alternatives with the potential for greater returns. Thus, the fallout from the recent banking crisis could act as a historic springboard event for the world’s largest cryptocurrency.
Image credit
Featured image via Pixabay
