The medium and long-term outlook for the cryptocurrency market has “strengthened significantly” following the recent turmoil in the US banking industry. About it says in a report from the Coinbase exchange.
According to the study, the Federal Reserve’s policy of raising rates led to a drop in Treasury bond prices, which lowered the value of bank portfolios.
The ensuing collapse of Silvergate Bank, Signature Bank and Silicon Valley Bank caused a panic in the financial markets and led to a drop in bank shares in global markets, the report said.
“Cryptocurrencies have shown some resilience, in part for technical reasons. […] More people are now looking for an alternative to the traditional financial system,” wrote David Duong, head of research at Coinbase.
The company added that the underlying technology behind blockchains and smart contracts is “in stark contrast to the poor risk management practices that have led to turmoil in the US banking sector.”
However, Coinbase noted that in the short term, the digital asset business may face a “more challenging operating environment” due to the loss of some fiat payment systems.
Earlier, representatives of the USDC stablecoin co-issuers – Circle and Coinbase – said that problems in the banking sector led to uncertainty in the crypto market.
Recall that in March 2023, Colorado Senator Michael Bennet called a friendly attitude towards digital assets the reason for the collapse of Signature Bank.
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Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
The medium and long-term outlook for the cryptocurrency market has “strengthened significantly” following the recent turmoil in the US banking industry. About it says in a report from the Coinbase exchange.
According to the study, the Federal Reserve’s policy of raising rates led to a drop in Treasury bond prices, which lowered the value of bank portfolios.
The ensuing collapse of Silvergate Bank, Signature Bank and Silicon Valley Bank caused a panic in the financial markets and led to a drop in bank shares in global markets, the report said.
“Cryptocurrencies have shown some resilience, in part for technical reasons. […] More people are now looking for an alternative to the traditional financial system,” wrote David Duong, head of research at Coinbase.
The company added that the underlying technology behind blockchains and smart contracts is “in stark contrast to the poor risk management practices that have led to turmoil in the US banking sector.”
However, Coinbase noted that in the short term, the digital asset business may face a “more challenging operating environment” due to the loss of some fiat payment systems.
Earlier, representatives of the USDC stablecoin co-issuers – Circle and Coinbase – said that problems in the banking sector led to uncertainty in the crypto market.
Recall that in March 2023, Colorado Senator Michael Bennet called a friendly attitude towards digital assets the reason for the collapse of Signature Bank.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
