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The CEO of financial company deVere Group, Nigel Green, noted that against the background of the softened policy of the US Federal Reserve, investors began to invest in bitcoin and other cryptocurrencies to protect their savings.
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In a blog post by Nigel Greenwrote that the US banking crisis, during which the large banks Silicon Valley Bank and Signature Bank went bankrupt, led to a change in the rhetoric of the Fed. American treasurers have started printing money again and injecting money supply to support the economy. This is fraught with a new increase in inflation, so investors are looking for alternatives to bank deposits to save money.
“Bitcoin rose in price after the collapse of SiliconValley and Signature, and the banking crisis has been a powerful driver for the largest cryptocurrency as investors look for savings protection, alternative assets. Essentially, the SVB rescue package is a form of quantitative easing. It increases the amount of money supply, which means it leads to the depreciation of the dollar. Therefore, investors are looking for protective assets, ”writes the CEO of a company that manages $ 12 billion.
According to Nigel Green, the global financial and banking crisis has become a real threat to financial stability and it is at this moment that Bitcoin can show its full power.
“Due to financial stability risks, wewe predict that the Fed will stop raising rates, and this is positive for bitcoin. If the US starts cutting rates, it will make loans cheaper, increase spending and investment, and again, this is good for bitcoin, because investors will look for higher returns. The banking crisis in the US has become a massive springboard for the first cryptocurrency,” concludes Green.
In January, it was reported that 82% of dollar millionaires polled by deVere Group analysts were interested in investing in digital currencies, including bitcoin.