Crypto endorsed as banking stocks crash

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Chaos brews in the US financial sector as banking stocks tank further, and experts claim a crypto moment is brewing. The Fed’s continuous interest rate hike to curb inflation isn’t helping matters.

The rising crisis sparked reactions from prominent analysts who weighed in on a possible bull run for crypto as the bank stocks tank.

The analysts believe the rising crisis presents an opportunity for crypto and bonds to shine. In recent tweets, prominent financial analysts, David Rosenberg, and Raoul Pal, think people should move to bonds and crypto now that banks are failing.

Banking Stocks Nosedive

The past few weeks have been chaotic in the United States banking sector as top banks collapsed in the blink of an eye. Although the crisis slightly impacted crypto after three crypto-focused banks collapsed, asset prices gained momentum, soaring higher in the days following the news.

Many attributed the rallies to the lost confidence in bank stocks among investors. Most investors resorted to crypto as an alternative to the declining bank stocks, increasing market sentiment and pushing asset prices.

Bitcoin rallied over 40% in the weeks following the collapse of top US-based global banks. Bitcoin hit and exceeded the $28,000 mark for the first time since June 2022.

The total crypto market displays a bearish momentum l Total market cap on Tradingview

This price movement suggested the banking crisis could be a blessing in disguise for crypto. But, banks aren’t happy with the Fed’s refusal to surrender its hawkish inflation-curbing strategy amid a looming recession, as it affects their liquidity and stock prices.

Bonds and Crypto Rally Brewing, Says, Analyst

In a tweet, the founder and CEO of Global Macro Investor, Raoul Pal, took to Twitter to share his opinion.

In Pal’s words, bonds and the crypto moment are brewing. The banks suggest that the Federal Reserve raising rates again and adding to the risk of increasing attention on the debt ceiling and liquidity removal is risky. 

Another analyst, David Rosenberg, founder and president of Rosenberg Research and Associates Inc., also weighed in.

He complained about the US Fed’s adamancy towards the growing banking crisis as it continues hiking interest rates, asking his 234,000 followers to buy bonds.

Featured image/Pexels, Chart/Tradingview

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