Bitcoin, Ether and Doge Soar After US Government’s SVB Bailout – Experts Expect Investor Interest to Rise

US government’s decision to provide safety net for Silicon Valley Bank SIVB The value of major cryptocurrencies has increased due to depositors Bitcoin BTC/USD, ether ETH/USD And dog coin doge/usd And the market capitalization is breaking the $1 trillion mark.

This morning, bitcoin broke the $23,500 barrier and reached $24,000 at the time of writing.

Meanwhile, Ether is trading up 13% at $1652, while binance coin bnb/usd exceeds 13%, cardano ADA/USD is trading up 14% and dogecoin is up over 10%

Market participants and industry experts are of the opinion that the surge in cryptocurrency prices reflects the growing correlation between the broader financial market and digital currencies.

Experts suggest that this correlation is to be expected given the hundreds of billions of dollars in ramifications, with investors fleeing to safe havens such as gold or cryptocurrencies in such cases.

However, according to him, this event cannot be viewed as the sole factor in achieving the correlation between cryptocurrencies and the broader financial market.

Commenting on the correlation, Edul Patelco-founder and CEO of Mudrex Told Benzinga that in times of market trouble, investors tend to run to the safest haven, such as gold.

Reading: CZ speculates on a government conspiracy to bring down the banks; Circle responds to SVB decline

He further added that in the long run, lower volatility can be expected as the asset class matures.

Robert Quartley-Janeirochief strategy officer bitruCommented on the bailout being a lifeline for the technology and VC space and how a capital and debt crisis has been averted, which would affect new technologies with utility strife following the SVB issues.

He added that the global nature of cryptocurrency trading makes it both correlated and uncorrelated, depending on the level of investor reaction.

marius grigorasCEO of Bherowelcomed the surge in cryptocurrency Markets further highlighted that this presents a significant opportunity to offer a more diversified investment portfolio to both cryptocurrency and traditional investors.

He added that regulatory compliance will increase adoption and acceptance from traditional financial industries, leading to greater liquidity, increased stability, and a wider range of investment opportunities for both retail and institutional investors.

Alex Falyshin, CEO of CoinLoan, said that the US government has technically indicated that if necessary to save the economy, they will print more money or save institutions and their customers from drowning, respectively, due to poor risk management. .
“What this says is that the crypto market is part of the global market and reacts to any kind of positive news in the same way as other assets. More money and liquidity means the market will naturally go up. Potential QE and money Even the slightest hint will immediately enter the market,” he said.

In the long run, this gap will narrow even further as many see Bitcoin BTC/USD And unlike other decentralized assets fiat currencies can be printed and distributed, he added.

next: JP Morgan Predicts Impending Disaster for the Crypto Market After the Silvergate Shutdown

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