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Financial markets have been shaken in the past week following a series of bank collapses, providing a perfect setting for the decentralized-financial system to stand out as an alternative and for a continued advance in cryptocurrency markets, Bernstein said in a research report Saturday.
First Republic Bank’s (FRC) deposit rescue package by multiple institutions should make it obvious that this is a “generic banking problem” and crypto isn't to blame, the report said, noting that initial reactions to the collapse of of Silvergate Bank, Silicon Valley Bank and Signature Bank were that those banks held deposits from the crypto world and therefore their problems were idiosyncratic.
“This is the perfect setting for bitcoin, ethereum and the rest of the decentralized-financial system to stand out as an alternative system, delinked from the traditional centralized banking system,” analysts Gautam Chhugani and Manas Agrawal wrote.
Bernstein says institutional funds and crypto funds have been bystanders in the market, with “crypto native money” behind the recent price moves. As more outside money is forced to participate, the moves higher should become sharper.
The banking on-ramp to crypto may be weaker in the U.S, but continues to be stable internationally, with access through over-the-counter hubs in Asia and Europe, the note said. OTC trading is done directly between two parties without the supervision of an exchange.
OTC hubs in the U.S. also seem to be working without interruption, the note added.
Read more: Cryptocurrency Outlook Is Strengthened by U.S. Banking Turmoil: Coinbase
The biggest U.S. banks have not stepped forward to welcome homeless crypto businesses scrambling for banking services after fleeing the wreckage of Silvergate Bank, Signature Bank and Silicon Valley Bank.
As crisis stalks the traditional world of stocks and bonds, bitcoin is suddenly looking like a safe haven. The infamously volatile cryptocurrency seems positively hale and hearty, just as a banking meltdown drives markets into the arms of a recession. Bitcoin has risen 21% this month, while a choppy S&P 500 has lost 1.4% and gold has gained 8%.
One of the most popular Ethereum scaling solutions, Arbitrum aims to speed up transaction times and cut fees on the Ethereum blockchain.
Crypto firms are turning to a shorter and shorter list of depositories still willing to take their business. It could be a recipe for more failures.
Bank stocks rallied on Monday and a cross-asset scramble for safety abated, as investors heaved a tentative sigh of relief that a historic weekend rescue of financial heavyweight Credit Suisse is containing the banking crisis for now. Sunday saw the most dramatic state intervention since the 2008 global financial crisis, with UBS buying Credit Suisse for 3 billion francs ($3.2 billion) in a takeover backstopped by unlimited funding pledges from the world's top central banks. The speedy orchestration of Credit Suisse's takeover was received by investors as an acceptable measure to stem contagion, but fears that other struggling banks might teeter next kept markets on edge.
NEW DELHI (Reuters) -India plans to extend restrictions on the export of diesel and gasoline after the current fiscal year ends this month to ensure the availability of refined fuels for the domestic market, two government sources with direct knowledge of the matter said. The extension of rules may discourage some Indian refiners, mainly private companies, from buying Russian fuels for re-exports to countries including those in Europe that have stopped purchases of refined products from Russia due to its invasion of Ukraine. India, the world's third-largest oil consumer, imposed a windfall tax on refined fuel exports last year and mandated that companies sell the equivalent of 50% of their gasoline exports and 30% of their diesel exports domestically in the current fiscal year to March 31.
More people now appreciate the fundamental value proposition of having an alternative to the traditional financial system, the report said.
Bank stocks rallied on Monday and a cross-asset scramble for safety abated, as investors heaved a tentative sigh of relief that a historic weekend rescue of financial heavyweight Credit Suisse is containing the banking crisis for now. Sunday saw the most dramatic state intervention since the 2008 global financial crisis, with UBS buying Credit Suisse for 3 billion francs ($3.2 billion) in a takeover backstopped by unlimited funding pledges from the world's top central banks.
(Bloomberg) — Former Goldman Sachs chief executive Lloyd Blankfein said the Federal Reserve can take a pause hiking interest rates this week as the unfolding bank crisis will effectively tighten lending standards in the economy.Most Read from BloombergUBS to Buy Credit Suisse in $3.3 Billion Deal to End CrisisCredit Suisse’s $17 Billion of Risky Bonds Are Now WorthlessWarren Buffett in Contact With Biden Team on Banking CrisisCredit Suisse Said to Push Back Against UBS’s $1 Billion OfferFed and
Gold ETFs have been gaining strength lately on increased safe-haven appeal.
India's macroeconomic stability will not be affected by the collapse of Credit Suisse and two U.S. lenders, the country's economic affairs secretary told The Economic Times. Global capital flows might be adversely affected in the event of the crisis getting more pronounced, Ajay Seth told the newspaper in an interview. "India's macroeconomic fundamentals remain strong and the country is on a sound footing to absorb any external shocks," Seth said.
In its latest financial statement, the bankrupt exchange's new managers cited $11.6 billion in claims and just $4.8 billion assets.
First Republic Bank, JPMorgan and Nike are highlights of the Zacks Earnings Preview article.
Let's check the rotation turning under the surface, the likelihood of rate hikes and why investors are scratching their heads over this action.
ChatGPT is a chatbot capable of understanding context and providing natural, fluid dialogue responses to prompts and queries.
The Dow and the small caps turned up on Monday, but many charts that I'm looking at are still a mess, and I don't see any reason to put cash to work.
Singapore-based digital asset trading platform Crypto.com has received a preparatory license from Dubai's Virtual Digital Assets regulator.
Water regulator Ofwat will be able to block companies from paying out dividends they cannot afford in a step towards forcing them to clean up waterways and leaks.
U.S. banks should boost liquidity, tighten lending standards and boost balance sheet defenses after bank closures heightened concerns about systemic risks, Morgan Stanley analysts said on Monday. "Expect management teams will open up the defense playbook," said a Morgan Stanley report led by Betsy Graseck. The bank said the sector is already in "systemic risk territory," as the U.S. Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) jointly invoked the systemic risk exception last week.
A final vote on the bloc’s Markets in Crypto Assets Regulation, which brings in a new licensing regime, is due April 19.