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As Faith in USD Declines Some Banks are Turning to Bitcoin

FX Street | | Apr 10, 2023

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Bitcoin has been expected to benefit from the recent bank failures

  • Recent reports highlighted that the Bank of America (BoA) and Fidelity Management bought more than $85 million worth of MicroStrategy's MSTR shares in Q1 this year. The Michael Saylor tech company has been an avid accumulator of BTC and, over the last two years, has acquired 140,000 BTC worth over $4.1 billion.
    • While many banks have been critical of cryptocurrencies, the Bank of America has stated that Bitcoin acts similarly to Gold as a safe haven. Calling it an inflation hedge due to its fixed supply, BoA considers it to be a safer investment amidst the uncertain macro environment.
    • The bank's global research team, in a recent report, also stated,

      "Digital currencies appear inevitable. We view distributed ledgers and digital currencies, such as CBDCs and stablecoins, as a natural evolution of today's monetary and payment systems."

See:  Bitcoin Payments on the Rise

  • Hedge: As economic conditions worsen and inflation remains high, Bitcoin investment could be a smart move. The Consumer Price Index (CPI) has been a concern and is still above the Federal Reserve's target rate, which could significantly impact spending power. With a recession expected by mid-2023, Bitcoin's increasing dominance in the crypto market and recent recovery could make it a strong investment choice. BTC dominance is holding firm at 47.78%.

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NCFA Jan 2018 resize - As Faith in USD Declines Some Banks are Turning to BitcoinThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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