CEO of $12 billion financial advisory firm deVere Group, Nigel Green, says investors are looking to alternatives like Bitcoin and crypto as the US enters a new era of quantitative easing.
In a blog post, Green says that US Treasury actions after the Silicon Valley Bank crash represent a new wave of money printing and financial stimulus that has investors looking for ways to preserve their capital.
Green highlights Bitcoin’s meager supply of 21 million coins as one of the key features that makes it attractive in the current economic environment.
“Bitcoin rose in price following the recent collapse of Silicon Valley Bank and Signature Bank, with the banking crisis acting as a springboard event for the world’s largest cryptocurrency, as global investors seek safe haven, altcoins…
In essence, the SVB bailout package is a new form of quantitative easing (QE). This increases the supply of dollars in circulation, which can lead to a drop in the value of the greenback compared to other currencies, as the increased supply can decrease its purchasing power.
Consequently, this leads investors to look for alternatives such as Bitcoin, which has a limited supply.
According to Green, the global banking crisis poses a major threat to financial stability and represents a historic moment for the flagship crypto asset.
“Due to looming risks to financial stability, we now forecast that the Fed will halt its aggressive rate-hike agenda, which is bullish for Bitcoin. Reduced interest rates make borrowing cheaper, which may lead to increased spending and investment, as well as increased demand for BTC as investors seek alternatives with the potential for higher returns.
In fact, the fallout from this latest banking crisis seems to serve as the starting point for a larger target for the world’s largest crypto. It’s a historic springboard event.”
You can see Green’s full post here.
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