As we quoted as Kriptokoin.com, the banking crisis marked the year 2023 and led to the rise of many cryptocurrencies! So, which cryptocurrencies benefited the most from this banking crisis? Here are the details…
After the banking crisis, these 3 cryptocurrencies got all the attention!
The banking crisis experienced in March negatively affected many investors in the financial sector. However, there are some safe cryptos that investors should consider buying as the crisis is a lucrative period for them. Bitcoin (BTC) has risen significantly from its low of just over $20,000 to over $28,000. It also unusually outperformed many other altcoins during market rallies.
This trend shows that security is becoming more and more important to investors when making investment decisions. Cryptocurrencies are particularly unique as they are completely decentralized and cannot go bankrupt or experience significant inflation. For example, Bitcoin has very low inflation rates and high demand, making it one of the safest assets to hold during a banking crisis. Also, investors have full control over their assets, which is an advantage over banks that can restrict withdrawals.
Bitcoin (BTC)
Bitcoin has been one of the biggest beneficiaries of the banking crisis and looks set to continue to benefit from future disruptions in the financial industry. It differs from other entities because it is not tied to the banking industry and its operations are decentralized. No central authority can stop or censor them, as can bank transactions. In addition, its supply is fixed through an algorithm, which prevents high inflation. These features make Bitcoin a reliable hedge against the risks and uncertainties in the traditional financial system. Therefore, it is not surprising that so many investors bought Bitcoin in March.
But that’s not all. There are catalysts ahead of Bitcoin that could increase its price even if banks don’t experience a crisis. One of them is the Bitcoin halving event, which will halve the number of new BTC created every 10 minutes in 2024. This could create a significant gap between supply and demand, pushing the price up. Also, the Federal Reserve is expected to lower interest rates later this year and stimulate the economy. Loose monetary policy could boost Bitcoin further, so experts see Bitcoin as the best option if investors want to take advantage of the banking crisis. Instantly, BTC is trading at $29,419.27.
Pax Gold (PAXG)
Pax Gold (PAXG) is a unique cryptocurrency backed by physical gold. Each PAXG coin represents one fine troy ounce of London Good Delivery gold stored in professional vaults. This means that PAXG has a stable value in sync with the gold price. According to experts, even if PAXG doesn’t deliver explosive gains to investors, it could provide a hedge against another potential banking crisis. As we mentioned earlier, Gold has a long history as a store of value and provides a hedge against inflation and devaluation. It is also seen as a hedge against systemic risk and geopolitical uncertainty. In other words, gold tends to perform well when everything else goes wrong, and the recent price action has proven that.
As you know, the cryptocurrency market also suffers from sudden crashes and is always subject to manipulation, while Pax Gold seems to be exempt. This crypto is not entirely risk-free as it is affiliated with the Paxos Trust Company, but it is still among the best cryptocurrencies to buy, according to experts. PAXG is currently trading at $1,996.
Ethereum (ETH)
Ethereum (ETH), the second largest cryptocurrency by market capitalization, is also one of the biggest beneficiaries of the “crisis” in the banking industry. Along with Bitcoin, Ethereum’s blockchain is among the most secure and decentralized chains in the crypto space. When two major regional banks collapsed last month, many saw Ethereum as a safe place to store their money.
According to experts, this could be a “boring” choice as it is another of the major cryptocurrencies. However, experts have chosen ETH over smaller cryptocurrencies, especially to avoid a resurgence of volatility in the banking industry. Larger projects or projects backed by commodities with large market caps have little institutional ownership and can insulate themselves from the storm. This is why ETH is among the best cryptos to buy in case of further instability in the banking industry. Instantly, ETH is trading at $1,912.
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