Bitcoin Foundation Chairman Brock Pierce reacts to Bitcoin’s exit from stocks after multiple banking crises in Cavuto: Coast to Coast.
Bitcoin has emerged as an unlikely benefactor as investors flee bank stocks following the collapse of Silicon Valley Bank.
The largest cryptocurrency by market capitalization topped $27,000 over the weekend, its highest level since June. Up more than 60% for the full year, it surpassed the S&P 500’s 2% gain by Friday, making it one of the best performing asset classes for the year.
The move up could be related to an unexpected change in the Federal Reserve’s plans to cut inflation.
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“The strange element about Larry is that it comes with the recent troubles in the banking sector, especially two banks. [Silicon Valley Bank and Signature] It was a big lender to the crypto industry. What seems to be a big tailwind for Bitcoin is the rapid change in Fed expectations,” Jim Iulio of TJM Institutional told CME Active Trader.
as of Sunday, CME’s Fed Watch Tool Thirty-eight percent of the market expect the Fed to pause rate hikes at Wednesday’s meeting, with 62% expecting a 25 basis point hike. Zero participants expect rate cuts. A decision will be made at 2:30 pm ET, followed by a press conference with Chairman Jerome Powell.
Bitcoin (Reuters/Benoit Tessier/Illustration/Document Photo/Reuters Photo)
Cathie Wood, founder, CEO and CIO of Ark Invest, said in “The Claman Countdown” that Friday’s bitcoin had a negative impact on banking and the recent news that the Fed would pause its rate hike strategy and reverse course. said it is benefiting from the shift.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| coin | Coinbase Global Co., Ltd. | 74.98 | +7.20 | +10.62% |
“Recently, when I felt that Coinbase was so misunderstood, and that banking regulators seemed to be blaming crypto for what was happening right now, which wasn’t quite the case, we “No, cryptocurrency will be the beneficiary, the escape to safety,” she explained.
“Also, for Coinbase, despite what many people think, we can see that they are trying to be as compliant as possible with this new asset class while also educating regulators on what It’s all about this new asset class.”
Other cryptocurrencies have also benefited, such as Ethereum, which has surged more than 40% this year.
