Bitcoin gained traction not too long ago even though the Federal Reserve announced it was hiking rates another 0.25 basis points.
Bitcoin Remains Strong
This is proof that many people have restored their faith in the world’s number one digital currency by market cap and are shirking both Federal Reserve and banking concerns to the side.
The American economy and the banking crisis the country is enduring at the time of writing would likely cause many standard traders and investors to start shivering in their boots, but with bitcoin suddenly regaining its “digital gold” status, there are many people out there willing to let crypto drive them towards the future.
There are problems rearing their ugly heads, however, a big one being that agencies such as the Securities and Exchange Commission (SEC) seem to be trying to destroy crypto and bring down all it stands for. Earlier today, we published an article talking about how Coinbase – the western world’s most popular and active digital currency trading platform – had been served a Wells notice saying it was on the verge of facing charges.
Benoit Bosc – global head of product at crypto trading firm GSR Markets – commented on the situation and said:
The crypto ecosystem is under attack. You’re seeing all those regulation-by-enforcement attempts, but also the banking crisis that has spread to banks (that) serve the crypto community. As a result, you have this flight to quality to the majors. Bitcoin has benefited the most, and it’s rallied significantly ever since those events have started. This [has] been the case with the action of the Fed yesterday in their refusal to really consider any cuts, but even refusal to pause in the cycle of hikes.
He also took issue with Janet Yellen, the current Treasury Secretary. He said that her unwillingness to expand FDIC insurance coverage to deposits and amounts greater than $250K is a huge mistake, especially when the banking world has become so unpredictable. He stated:
The first reaction is one that’s correlated to all risk assets. It’s a little leg down, but then after that, you do become, you know, you have that store of value, digital gold feature of bitcoin, which is that you still have inflation. They’re fighting it, but it still exists. Bitcoin has a limited supply, and so that’s a better alternative. You also have issues with stable coins. So, bitcoin suddenly seems more stable and safer than those at the moment.
The Future’s Bright
Still, he’s confident about where bitcoin and crypto will go. He stated:
A couple of months ago, it was no one thought we would be there. Those events a couple of years ago would have decimated the market. It’s very interesting to see how strong the market is… I don’t see it as a risk on rally.
