- Researchers appreciated the role of cryptocurrency in the recent U.S. banking turmoil.
- Recent chaos in the U.S. financial system opened the doors for the crypto market.
Crypto researchers believe that digital currencies will become a solution for next-generation financial issues. Crypto will act as a safe mode of currency in the present scenario. Recently the U.S. banking system affected the sentiments of retail investors and start-up players. So is it time for cryptocurrency to come into the limelight to maintain the economic stability?
Recently the head of institutional research of Coinbase, David Duong, released a report saying that crypto became a savior in the recent downfall of the U.S. banking system. The report said most individuals appreciated an alternative method to the traditional financial system. Researchers find chaos in the U.S. financial system wherein they opened the doors for the crypto market.
“Overall, we believe the medium to long-term outlook of cryptocurrencies has been reinforced to the upside. The technology behind open and transparent smart contracts starkly contrast the poor risk management practices that led to the turmoil witnessed in the U.S. banking sector this week,” the researcher said.
Meanwhile, the Coinbase researcher said that due to the recent downfall of Silvergate Bank and Silicon Valley Bank (SVB), the Federal Reserve might bring some changes in monetary policy, which may affect financial markets. Somehow the upcoming changes may impact the crypto business, but the market can still bounce back.
In recent months U.S. regulators and lawmakers created a mess in the crypto industry. The U.S. regulator Securities and Exchange Commission (SEC), forced a crypto exchange Kraken to discontinue its staking service earlier. SEC charged the crypto exchange for breaching the nation’s security laws. Earlier, the SEC chair denied considering crypto exchanges as safe qualified custodians for retail investors.
Crypto’s new bull run, Coinbase trading at a green streak
Initially, Silvergate Bank and SVB’s downfall slightly affected the crypto price. After days, the crypto market started gaining profits. Currently, crypto assets are trading on a winning streak backing up the Coinbase stock. For the first time since June 2022, Bitcoin (BTC) largest crypto asset by market capitalization, surpassed the $28,000 mark on March 21. At press time, Ethereum (ETH) is trading at $1,794, up by 3.87% from the past seven days.
“We believe the crypto price is the main factor when investing in Coinbase. We believe a crypto bull market will drive significant revenue growth,” Bo Pei, an analyst at U.S. Tiger Securities, said. On March 21 Coinbase market closed at $75.14.
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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