The cryptocurrency is now trading below the average spot ETF purchase price of about $58K, and this could trigger liquidations, the report said.
Mt. Gox’s $9B overhang could ‘spook the market,’ pressure Bitcoin: K33
“Mt. Gox coins could become a relevant negative price contributor in the next weeks,” say K33 Research analysts.
Ether ETFs Are Unlikely to Be Approved in May: Standard Chartered
The bank reiterated its year-end bitcoin and ether targets of $150,000 and $8,000, respectively.
Galaxy Digital’s Strong Earnings Will Carry Into Current Quarter, Analyst Says
Improved crypto market conditions due to anticipation of spot bitcoin ETF approval helped boost earnings, the report said.
Bitcoin Miner Bitdeer Is ‘Differentiated’ From Peers, Shares Are Cheap: Benchmark
Stock appears undervalued given the wide gap between the company’s valuation and its growth prospects, the report said.
MicroStrategy ‘Not Resting on Its Laurels’ as Bitcoin Hits All-Time High: Canaccord
The investment bank almost doubled its price target on the stock to $1,810 from $975, highest among Wall Street analysts.
Bernstein Is ‘Now More Convinced’ That Bitcoin Will Hit $150K After Massive Rally
Spot bitcoin ETF inflows have surpassed expectations, the broker said in the report.
Bitcoin Soared to an All-Time High. So Why Aren’t Miners Blasting Off, Too?
Investors are pouring money into spot ETFs while avoiding miners due to risks related to Bitcoin’s halving event.
Bitcoin Could Slide to $42K After Halving Hype Subsides, JPMorgan Says
The bitcoin production cost has historically acted as a lower boundary to the cryptocurrency’s price, the report said.
Bitcoin Miner Marathon’s Shares Outperform Peers Ahead of Possible ‘Strong’ Earnings Report
The miner is expected to report a “strong acceleration in Q/Q revenue growth” due to a rally in bitcoin prices, said a Jefferies analyst.
Ether’s Bitcoin Beating Rally Not Just Because of Potential ETF Approval: Bernstein
The amount of ether held on exchanges is at an all-time low of 11%, a sign that more of the cryptocurrency is being locked up for DeFi, the report said.
Retail Investors Were Likely Behind The Crypto Market Rally in February, JPMorgan Says
Increased retail activity comes ahead of the three main catalysts in the coming months: the bitcoin halving, the Dencun upgrade of the Ethereum blockchain and the potential approval of spot ether ETFs, the report said.
Vibe Check: The Bullish Bounce Back: CoinDesk Indices’ Todd Groth
Periodic observations and market musings from Todd Groth, Head of Research, CoinDesk Indices.
Vibe Check: Ether Finds Support: CoinDesk Indices’ Todd Groth
Periodic observations and market musings from Todd Groth, Head of Research, CoinDesk Indices.
Many Retail Investors See Bitcoin Price Dropping Below $20K by Year End: Deutsche Bank
Many Retail Investors See Bitcoin Price Dropping Below $20K by Year End: Deutsche Bank
Bernstein Says Buy the Dip in Bitcoin Mining Stocks Ahead of BTC Price ‘Inflection’
The broker says it prefers outperform rated mining stocks Riot Platforms (RIOT) and CleanSpark (CLSK).
ChatGPT and AI the newest vector for malware: Meta security team
Security researchers at Meta said “bad actors” have flocked to generative AI because it’s the latest tech to capture “people’s imagination and excitement.”
Prominent Analysts Vouch For Crypto As The Banking Stocks Nosedive
Chaos brews in the US financial sector as banking stocks tank further, and experts claim a crypto moment is brewing. The Fed’s continuous interest rate hike to curb inflation isn’t helping matters.
The rising crisis sparked reactions from prominent analysts who weighed in on a possible bull run for crypto as the bank stocks tank.
The analysts believe the rising crisis presents an opportunity for crypto and bonds to shine. In recent tweets, prominent financial analysts, David Rosenberg, and Raoul Pal, think people should move to bonds and crypto now that banks are failing.
Banking Stocks Nosedive
The past few weeks have been chaotic in the United States banking sector as top banks collapsed in the blink of an eye. Although the crisis slightly impacted crypto after three crypto-focused banks collapsed, asset prices gained momentum, soaring higher in the days following the news.
this is pure madness- it's literally time for a massive rate cut
US Regional Bank Stocks Today: 1. PacWest, $PACW: -30% 2. Western Alliance, $WAL: -25% 3. Metropolitan Bank, $MCB: -21% 4. HomeStreet, $HMST: -15% 5. Zions Bank, $ZION: -10% 6. KeyCorp, $KEY: -7% 7.…
— Afshine Emrani MD FACC (@afshineemrani) May 2, 2023
Many attributed the rallies to the lost confidence in bank stocks among investors. Most investors resorted to crypto as an alternative to the declining bank stocks, increasing market sentiment and pushing asset prices.
Bitcoin rallied over 40% in the weeks following the collapse of top US-based global banks. Bitcoin hit and exceeded the $28,000 mark for the first time since June 2022.
This price movement suggested the banking crisis could be a blessing in disguise for crypto. But, banks aren’t happy with the Fed’s refusal to surrender its hawkish inflation-curbing strategy amid a looming recession, as it affects their liquidity and stock prices.
Bonds and Crypto Rally Brewing, Says, Analyst
In a tweet, the founder and CEO of Global Macro Investor, Raoul Pal, took to Twitter to share his opinion.
The banks are suggesting that the Fed would be absolutely bananas to raise rates again… and add to that the risk of more noise around the debt ceiling and possible liquidity removal. They are walking a very tight rope…
Feels like a bonds + crypto moment brewing…
— Raoul Pal (@RaoulGMI) May 2, 2023
In Pal’s words, bonds and the crypto moment are brewing. The banks suggest that the Federal Reserve raising rates again and adding to the risk of increasing attention on the debt ceiling and liquidity removal is risky.
Another analyst, David Rosenberg, founder and president of Rosenberg Research and Associates Inc., also weighed in.
The only central banker to tighten into a banking crisis was Powell’s hero, Paul Volcker, in 1984 (Continental Illinois) and even then, the greatest inflation dragon-slayer of all time quickly reversed course and cut 150 bps. Buy bonds!
— David Rosenberg (@EconguyRosie) May 2, 2023
He complained about the US Fed’s adamancy towards the growing banking crisis as it continues hiking interest rates, asking his 234,000 followers to buy bonds.
Featured image/Pexels, Chart/Tradingview
Why This Top Financial Expert Is Saying ‘Buy Bitcoin’ Amid Looming Bank Failures
The traditional banking system is facing major challenges, and according to top financial expert Bernstein, Bitcoin (BTC) could be a savior.
Bernstein analysts foresee Bitcoin’s long-awaited mainstream adoption could be potentially triggered by the US banking crisis.
The analysts suggest that the current state of the banking system will fuel a “new crypto cycle,” driven by mass migration to self-custody wallets. In a note seen by CNBC, analysts Gautam Chhugani and Manas Agrawal noted:
“The safe haven signal will lead to a new crypto cycle, pushing digital wallets as on-chain savings accounts. The gap between Treasury rates and bank deposit rates will continue to hollow out banks, with weak balance sheets leading to another round of mass migration to money markets.”
According to Bernstein analysts, with recent events causing widespread financial uncertainty, investors are increasingly looking towards alternative investment options such as Bitcoin.
BTC Continues Its Uptrend
Despite the supposed buy signal, Bitcoin (BTC) hasn’t made any significant move yet. Instead, it has only seemed to picked up from its slowed-down uptrend in recent weeks. Over the past 24 hours, the top crypto has surged only 1.5% with a market price of $29,402, at the time of writing.
This gearing uptrend comes after a notable fall from the $30,000 region in recent weeks. So far, Bitcoin has a 24-hour range between a low of $28,748 and a high of $29,869. Alongside its price, the BTC market cap has also seen an uptrend. Its trading volume signals buying pressure indicating a possible continuous bullish trend.
Over the past week, Bitcoin’s market capitalization have surged from a low of $527 billion on April 22 to as high as $569 billion as of today. Its trading volume has also spiked from a daily trading volume of $19 billion to $23.3 billion, over the same period.
Implications Of The Banking Crisis On Bitcoin
According to Bernstein analysts, the growing banking crisis in the US could have significant implications for the future of Bitcoin. They predict that the crisis will cause another round of money printing and dollar debasement by the Federal Reserve.
This will once again bring Bitcoin back into the spotlight as digital gold. Cryptocurrency has long been touted as a hedge against inflation, and its value is often seen as an alternative to traditional safe-haven assets such as gold.
Notably, Bitcoin has since been publicized to be the future of finance and with the current state of the banking system, its potential to become the future of finance is becoming increasingly clear.
While traditional banks struggle with weak balance sheets and low-interest rates, Bitcoin continues to gain value and recognition as a legitimate investment option. Its decentralized nature and lack of reliance on traditional financial institutions make it an attractive option for investors looking to protect their assets in times of economic uncertainty.
With Bernstein analysts predicting a new crypto cycle and recommending that investors “buy Bitcoin,” it’s safe to say that the cryptocurrency is set to play an increasingly important role in the future of finance.
Featured image from iStock, Chart from TradingView