Bitcoin and cryptocurrencies have been thrust back into the limelight by the recent bank crisis, triggering a wave of wild crypto price predictions.
The bitcoin price has rocketed over the first three months of 2023, adding around 70% and helping the ethereum price and other smaller cryptocurrencies soar ahead of what could be a $300 trillion crypto “quantum leap.”
Now, as two of the world’s largest financial institutions quietly lay the groundwork for a future bitcoin price bull run, Bernstein analysts have said the world is at a “pivotal moment” along the “path to hyper-bitcoinization.”
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“As we head towards another pivotal moment in monetary history, savers would also watch for not just stability in nominal value but if any further accidents force the Fed to breach again the ‘real value’ of the government currency,” Bernstein analysts Gautam Chhugani and Manas Agrawal wrote in a research note shared by tech investor Balaji Srinivasan—who has a $1 million bet riding on the collapse of the U.S. dollar in merely a matter of months.
Last year, analysts at the $56 billion hedge fund Elliott Management warned the world is “on the path to hyperinflation,” potentially leading to “global societal collapse and civil or international strife” due to the Federal Reserve’s ultra-loose monetary policy during the Covid pandemic.
The banking crisis that swept the U.S. and Europe last month has forced the Fed and other top central banks into fresh dollar liquidity measures—”Which many bitcoin believers have suggested as the final path to hyper-bitcoinization,” the Bernstein strategists wrote, adding: “We would watch this space.”
Meanwhile, U.S. Treasury secretary Janet Yellen has promised all bank deposits would be protected by the government in the aftermath of Silicon Valley Bank’s sudden implosion, telling the Senate Finance Committee that “Americans can feel confident that their deposits will be there when they need them”—something the bitcoin and crypto community has pointed to as a sign of the system’s weakness.
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“Bitcoin’sbitcoin bullish momentum since the start of the year reflects renewed investor demand for the leading, most decentralized cryptocurrency,” Alex Adelman, the chief executive of bitcoin rewards app Lolli, said in emailed comments.
“The banking crisis has drawn attention to bitcoin as a new way of storing wealth that is free from centralized points of failure. Against the backdrop of a weakened banking sector, bitcoin’s decentralization is now more than ever a distinct and powerful advantage and point of interest.”
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