The cryptocurrency market’s medium to long-term forecast had been “reinforced to the upside” amid ongoing market and banking chaos in the United States, a key Coinbase executive said on Friday.
David Duong, head of institutional research, said in the report,
“Cryptocurrencies have exhibited some resilience, in part due to technical reasons, [and more people] now appreciate the fundamental value proposition of having an alternative to the points of failure inherent in the traditional financial system.”
The news comes amid ongoing Federal Reserve rate hikes, which have triggered instability and belt-tightening across the banking sector.
Additional crises, including the collapses of Silvergate Bank, Signature Bank, Silicon Valley Bank, and now-defunct crypto platform FTX, have created further headaches for investors.
The report added that open trustless blockchain and smart contract technologies stood in “stark contrast to the poor risk management practices that led to the turmoil witnessed in the U.S. banking sector this week.”
The report concluded that its observations supported the “fundamental arguments in favor of digital assets as an alternative and solution to the points of failure witness in the existing financial system.”
The operating environment for cryptocurrency business could “be more challenging” due to fiat payment rail losses. It also expected further redundancies to enter force, “expanding the crypto ecosystem in more creative ways.”
