Bitcoin's 'watershed moment' is here, thanks to the banking turmoil. Here's why the biggest cryptocurrency is enjoying its best quarter in 2 years amid financial turbulence.
As global markets still recover from the shock of this month's US bank collapses – Silvergate Capital,, Signature Bank – and a government-backed rescue of Credit Suisse in Europe, bitcoin has come out on top.
, recession fears, and more recently, the shocking failure of industry darling FTX all undermined investor sentiment. All this is to ask in the first place: Why is bitcoin shining in the middle of global banking turmoil? The banking crisis has triggered panic and mistrust among investors about the broader financial system. That's because it's revealed that the money people deposit in banks is the institution's money as much as their own.
"We are likely to see increased institutional interest in the asset given its"safe haven" status during times of market stress," Gazmararian said.The recent financial turmoil has renewed investor hopes that the Fed will ease up on its monetary policy, especially because some of the bank collapses stemmed from the aggressive rate hikes of the past year.
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