Cryptocurrencies have become more attractive assets amid financial turmoil in the US. The collapse of several banks forced investors to reconsider policy and switch to an innovative tool that does not depend on the traditional market, said David Duong, head of the research division of Coinbase.
According to his team, Bitcoin’s rally was driven by the uncertainty that dominates institutional and retail investors.
They decided to redistribute capital in favor of alternative instruments. Coinbase predicts an increase in investment in BTC and other virtual currencies in the long term.
David Duong noted:
Overall, we believe that the medium and long-term outlook for the cryptocurrency market has improved. Blockchain technology and smart contracts are different from the traditional risk management methods that have already led to destabilization in the US banking sector over the past week.
Digital currencies, by contrast, have shown resilience. Fundamentally, there are big shifts in the global financial system, and innovative tools are gradually beginning to crowd out traditional assets, Coinbase analysts said in a report.