After the collapse of three mid-sized US banks and the takeover of Credit Suisse, an Aussie crypto exchange believes it's bitcoin's "time to shine".
👉 Background: Over the last couple of weeks, following the collapse of Silicon Valley Bank, the price of bitcoin has rallied big time. We’re talkin’ a jump of more than 35 per cent. In fact, bitcoin is currently trading at around $41,000 AUD.
👉 What happened: Independent Reserve is an Aussie crypto exchange with around 250,000 users and over $1b in assets. And now, after the collapse of three mid-sized US banks and the emergency takeover of Credit Suisse, Independent Reserve’s CEO believes it is bitcoin’s “time to shine”.
👉 What else: The CEO reckons this sort of economic situation is what bitcoin was made for because bitcoin was created off the back of the GFC, and now we’re seeing echoes of that again.
💡 Fans of crypto see bitcoin as being a type of “digital gold”. Meaning: it can act as a kind of hedge, or risk mitigation strategy, for investors in times of market instability and high inflation.
💡Last year, crypto investor confidence was hit by the collapse of US crypto exchange FTX. But this most recent US banking blowup has helped shift the focus away from FTX and co and onto the stability of the traditional banking system.
💡We know crypto’s valuation has gone up and down with changes in traditional markets. But it will be interesting to see how high it can go.. especially if more banks around the world go down.
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