Bitcoin is still in a “safe haven phase”

Regulatory hurdles, uncertainty in the banking sector, and demise of some bad actors could be reasons for Bitcoin (BTC) decline, says 3IQ head of research Mark Connorsbitcoin) outperformed traditional safe-haven assets.

mark connors

“We’re still in a safe haven phase,” Connors stressed, noting that bitcoin’s price performance suggests it’s decoupling from other digital assets like ether (ETH), as well as traditional financial assets like gold and the U.S. 10-year Treasury note.

Conners noted that the value of the largest cryptocurrency by market capitalization has risen more than 20 percent over the past month compared with gold, which has gained only about 8 percent, while the U.S. 10-year Treasury note has fallen 4.3 percent. Over the past two weeks During the day, the bitcoin price rose about 15 percent and reached a local high of nearly $29,200 on March 30.

According to Connors, recent bank failures are still putting traditional financial markets (TradFi) at risk, with stocks and corporate debt more constrained. Silvergate Bank, Signature Bank and Silicon Valley Bank (SVB) have all closed or been taken over by regulators in the past month.

“We’re still in uncertain times,” Conners said.

At the same time, he said that the United States is tightening “tighter regulations” on the digital asset industry, and that the Biden administration is trying to control rather than kill the industry. .

Connors also believes that part of the rise in bitcoin prices is due to the collapse of some of the biggest players in the industry — Terraform Labs founder Do Kwon and former FTX exchange CEO Sam Bankman-Fried.

“It’s unusual for someone to hoard some bitcoins and then sell them in May like Do Kwon did,” Connor said. Kwon, who was recently arrested in Montenegro, regularly transferred bitcoins from wallets to Swiss banks and exchanged the tokens for cash, the SEC said.

“It’s also unusual for a multi-billion dollar scam like FTX to cause more FUD (fear, uncertainty and doubt),” he said of the now-defunct exchange. Former CEO Sam Bankman-Fried was arrested in the Bahamas, extradited to the US and faces multiple charges. He will appear in court later this year.

“That’s why Bitcoin is up 63% this year.”

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