Nigel Green, the CEO of deVere Group, has observed a shift in investor behavior due to the softened policy of the US Federal Reserve.
According to him, investors are turning towards cryptocurrencies, especially bitcoin, to safeguard their savings. In a recent blog post, Green mentioned that the US banking crisis caused a change in Fed rhetoric, and treasurers started printing money and injecting money supply to support the economy, leading to a potential increase in inflation.
Therefore, investors are looking for alternatives to traditional bank deposits to protect their money. Green believes that the banking crisis has become a strong driving force for bitcoin, as investors are searching for protective assets.
He noted that the SVB rescue package is a form of quantitative easing, which increases the money supply, leading to the depreciation of the dollar.
Due to the financial instability risks posed by the global banking crisis, Green predicts that the Fed will hold off on rate hikes, which will be positive for bitcoin.
He believes that if the US starts cutting rates, loans will become cheaper, leading to increased spending and investment, which will, in turn, benefit bitcoin, as investors search for higher returns.
As per deVere Group’s analysis, 82% of dollar millionaires expressed interest in digital currencies, including bitcoin.
Green concludes that the financial crisis has become a significant springboard for the first cryptocurrency, and it is an opportune moment for bitcoin to demonstrate its full potential.