Due to the recent financial turmoil in the US, cryptocurrencies have become increasingly attractive assets.
David Duong, head of the research division at Coinbase, believes that the collapse of numerous banks has caused investors to reevaluate their strategies and move towards this innovative form of investment that is not subject to the same market forces.
Bitcoin’s surge, he claims, can be attributed to the fears and uncertainties of both institutional and retail investors, who are looking to diversify their funds into alternative instruments.
Coinbase predicts a continuing trend of increased investment in Bitcoin and other digital currencies in the long run. Duong has further stated:
“We believe that the medium and long-term outlook for the cryptocurrency market has improved, as blockchain technology and smart contracts are different from the traditional risk management techniques that have already led to instability in the US banking sector in the past week.“
