Coinbase Reveals Why Bitcoin is Thriving Amid the Banking Stress
Despite being in the midst of a banking crisis, Bitcoin has been able to fare well and gradually rise up on its charts. In fact, the largest crypto’s dominance as a percent of the total crypto market cap has risen from the end of February’s 43.9% to 47.7% at the end of March. Reasoning out why, a recent Coinbase research Analysis noted, “ Part of the reason is that the stress in the banking system reinforced bitcoin ’s “store-of-value” properties. That is, because bitcoin largely exists outside of the traditional financial system, it offers a hedge against current conditions. “ Alongside, it should be noted that the U.S. Dollar Index continues to be on a macro-downtrend, despite the brief recovery noted from early February to early March. Bitcoin, on the other hand, had quite a fruitful Q1 and has been gradually inclining. In fact, the U.S. Dollar Index ’s 2023 high nearly coincided with Bitcoin’s 2023 low. Thus, the converse trends clearly bring to light to the inverse co...