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Investing.com – In a note released yesterday, analysts at AllianceBernstein posted a bullish view for cryptocurrencies in the face of the banking crisis that has rocked the financial world for more than a week.
They wrote that the and other cryptos are experiencing an “arc of redemption” as investors keep a close eye on the pressures on the US banking system.
The recent banking crisis, with the collapse of Silicon Valley Bank, Signature Bank and Silvergate Bank in the United States, and the acquisition by UBS of its ailing Swiss counterpart Credit Suisse over the weekend, accelerated the recovery of the , wrote the AllianceBernstein analysts.
As Goldman Sachs (NYSE:) pointed out recently, Bitcoin is indeed the world’s best performing asset year-to-date, gaining over 60%.
Analysts have further called bitcoin “an insurance against economic dislocation” and against the “undesirable consequences of excessive government discretion in monetary and fiscal matters.”
However, the situation could worsen according to analysts, who point out that in addition to recent tensions on short-term liquidity, the possibility of a recession could pose problems for banks with regard to the quality of their assets. medium term.
They also pointed out that a recession would also lead to lower government tax revenues, which could worsen the situation regarding the US debt ceiling and the country’s budget deficit, analysts noted.
They thus warned that any failure of the States or the Fed could propel bitcoin higher:
“If any element of the machinery of government/central banking breaks, bitcoin/crypto will benefit from such an event,” the analysts wrote.