The morning surge: Reasons behind the rise of Bitcoin, Ethereum, and Dogecoin

Several cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, experienced a rise in value linked to ongoing struggles in the banking system, particularly at First Republic, which recently reported a loss of $100bn in deposits. Large banks are considering buying some of First Republic’s underwater assets to reduce its balance sheet or acquire the bank, but even if the bank is saved, its future looks challenging. Bitcoin and other cryptocurrencies tend to do well when the banking system struggles as they were developed as an alternative to mainstream finance. However, the recent rally is likely not a long-term catalyst for cryptocurrencies as bank earnings have mainly shown stability, and other banks such as Western Alliance and PacWest Bancorp have rallied on their earnings reports. The macro environment, particularly slowing inflation followed by a pause on interest rate hikes from the Federal Reserve and a weakening dollar, will be more beneficial to cryptocurrencies. The author recommends having at least some exposure to Bitcoin and Ethereum in one’s investment portfolio but has no interest in Dogecoin.

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About The Author

Niels I have been passionate about dogecoin since 2019, and have since become an avid follower and advocate of the cryptocurrency. I keep a close eye on the Dogecoin market and trends, and I'm always up-to-date with the latest news and developments. As a true believer in the potential of dogecoin, I am excited to be a part of the growing community and I'm eager to share my knowledge and experience with others. When not busy with dogecoin, I enjoy golf, and I can often be found on the golf course.

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