The U.S. banking crisis is setting the stage for a crypto revolution that will push bitcoin adoption even further, Bernstein says.
Many investors are still sleeping on bitcoin's potential as an alternative financial system, but the U.S. banking crisis is setting the stage for a crypto revolution that will lead bitcoin through its next phase of adoption, says Bernstein. Bitcoin was originally designed, after the 2008 financial crisis, as digital cash that doesn't rely on banks.
" "What will follow, in our view, is a new crypto cycle, led by mass-migration to self-custody wallets used as on-chain savings accounts and a cambrian explosion of financial innovation on the blockchain." The shift back to the digital gold narrative has started, since the recent deposit runs and bank failures on regulated U.S. banks, triggered by high interest rates. By mid-March, bitcoin's correlation with both gold and the S & P 500 had inverted.