[2023-05-02] Bloomberg: Bitcoin Climbs as US Bank Failure Bolsters Crypto ...

[pawel7777]

Fresh off the press, a positive hit from Bloomberg on the recent Bitcoin price action.
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Bitcoin Climbs as US Bank Failure Bolsters Crypto Narrative

https://www.bloomberg.com/news/articles/2023-05-02/bitcoin-climbs-as-us-bank-failure-bolsters-crypto-narrative?leadSource=uverify%20wall

Bitcoin climbed Tuesday as renewed fears of stability in the US financial system bolstered the price of cryptocurrencies.

The largest digital asset by market value rose as much as 4.4% to $28,892 in New York trading hours, with Ether, the second largest token, also up 3.7%.

The gains come as US regional banks led a selloff in American equities following the collapse and sale of First Republic Bank, which has prompted calls on the Federal Reserve to pause further interest-rate hikes to shield the economy from lagging impacts.
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[Kakmakr]

OP, we know that governments bailed out Banks in the previous crisis and that it could only bolster their existence for a few years. The cracks are now being exposed with the high inflation and the impact of Covid and the Russia vs Ukrainian war.

The problem now will be to convince people that Bitcoin is a safe haven, because the volatility in the Bitcoin price.. has been one of the factors that kept institutional investors away from Bitcoin.

It has only been a few years ago, when the Bitcoin price was $60 000+ .... now it is floating around $30 000. 

[pawel7777]

The problem now will be to convince people that Bitcoin is a safe haven, because the volatility in the Bitcoin price.. has been one of the factors that kept institutional investors away from Bitcoin.

It has only been a few years ago, when the Bitcoin price was $60 000+ .... now it is floating around $30 000. 

Sure, but on the flip side, high volatility is something that attracts a lot of investors and most of all - traders. The greater the price swings - the greater the earning potential for those who can correctly identify trends.

I don't think anything as young as Bitcoin can become a reliable store of value. It takes time. And if Bitcoin is to survive it will probably slowly evolve from a highly speculative asset into something closer to gold.

It's worth noting that recently Bitcoin broke the correlation with stock markets, and if that's not just temporary, it could be a sign of changes in investors' perception.

[Pity Token]

It's probably climbing today due to the good news with inflation in the U.S but in the bigger picture we can see that bitcoin hasn't faltered while the banks are failing.

Perhaps we will start to see what bitcoin was built for, especially with the lightning network being more widely adopted