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- Run Forest Run - Bitcoin Loves a Banking Crisis
Run Forest Run - Bitcoin Loves a Banking Crisis
Run Forest Run - Bitcoin Loves a Banking Crisis
Friends and associates,
The recent banking crises, highlighted by the failure of Silicon Valley Bank (SVB) and Credit Suisse, have once again exposed the fragility of the traditional financial system, causing the biggest and fastest bank run in history. At the same time, Elizabeth Warren and other US politicians have launched a direct attack on the only viable monetary solution, crypto. However, this opposition has little impact on truly decentralized crypto applications like Bitcoin and Ethereum, which are running smoothly despite the political opposition. In fact, the attacks on centralized crypto companies make the industry more resilient as it becomes less reliant on centralized entities. We expect many will continue to run from trad-fi to crypto in the years ahead.
TLDR: Liz Warren’s attack on the crypto industry strengthened bitcoin’s value proposition, highlighting the ever-present bank run risk within illiquid and highly leveraged banks.
Conclusions
The US political establishment is marketing their failing product through CBDC’s and attacking the competitor, crypto
Liz Warren’s attack on crypto focused banks created contagion and caused the biggest bank run in US history
Banking is a sunset industry due to low interest rates, over regulation and failing monetary system
Fed tightening is coming to an end as banking crisis causes large unexpected balance sheet expansion
Bitcoin and the crypto ecosystem is the best viable alternative to our crumbling financial system
The probability of bitcoin retesting its 2022 lows are fading sharply as price accelerates above $30K
Rob Price, CFA
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