USA.- The banking crisis in the United States led some investors to turn to cryptocurrencies to protect their resources.
After the bankruptcy of the foreign banks Silicon Valley Bank and Silvergate Bank, the use of bitcoin as a store of value outside the banking system and as an alternative financial system to the traditional one was ratified, which evidenced a significant rise in the price of bitcoin during the last weeks.
“Cryptocurrencies are being perceived as an alternative to the traditional financial system and that is why we are seeing a great rise in the prices of cryptocurrencies, especially bitcoin and now also ethereum since the United States banking crisis occurred,” explained Francisco Mayora. Koibanx CFO.
He noted that in times of economic uncertainty or banking crises, some investors have turned to digital assets as a way to diversify their portfolios or protect their assets.
“However, the value of these assets can also be affected by general market sentiment and investor confidence,” the OctaFX analyst team added.
Although capital flight is taking place mainly from regional banks in the United States to large, overcapitalized banks, investors should carefully assess their risk tolerance and investment objectives before investing in cryptocurrencies, Koibanx and OctaFX advised.
“Liquidity problems at US banks may lead some investors to seek investment alternatives that enjoy some confidence, including cryptocurrencies.
“However, it is important to note that the cryptocurrency market is still relatively small compared to traditional financial markets, and the liquidity and volatility of these assets can be significant,” OctaFX said.
Cryptocurrencies have served as an alternative for investors in times of crisis, but it is critical that they approach them with caution and exercise extensive diligence and care before investing.
Some of the reasons why people invest in cryptocurrencies is the potential for high returns due to high volatility, decentralization and the search for alternatives to the traditional financial system with a certain degree of confidence, diversification of investment portfolios, greater adoption and acceptance. of technology.
