US FDIC Chair Warns Of Banking Crisis Risk; Will Bitcoin Benefit?
In what could be a sign of the possibility of yet another spell of US banking crisis, the Federal Deposit Insurance Corporation (FDIC) Chair warned of more downside risks from inflation and high interest rates. Earlier in March 2023, the Bitcoin price saw the much needed spike thanks to the fear, uncertainty and doubt around the collapse of Silicon Valley Bank (SVB).
Also Read: BTC Price: Bloomberg Strategist Predicts Key Level For Recovery Strength
Significant Downside Risks For Banking Industry
US FDIC Chair Martin Gruenberg warned that the banking industry remains exposed to significant downside risks from inflation and high interest rates, which could further cause profitability and credit quality to weaken. The US banking sector was rocked by fear and uncertainty in the first quarter as account holders rushed to withdraw funds from their accounts as the bank runs of Silicon Valley Bank and Signature Bank unfolded.
At the same time, the crypto market benefited with BTC price gaining significantly with investors prioritizing riskier assets like Bitcoin over the volatile financial markets. With uninsured account holders leaving banks, deposits declined for the fifth quarter in a row. This had in turn placed a burden on profitability of banks as they chased customers looking for better returns.
Buy Opportunity For Bitcoin?
While the concerns around commercial real sector also grow, the US banking sector could likely be in for yet another crisis going into the fourth quarter. Hence, at the current prices, BTC might be trading with a good buy opportunity.
Also Read: Crypto Companies Get More Time To Comply With UK Regulations
- Expert Warns More Crypto Bloodbath Ahead of CPI Data Tomorrow
- US President Promises Deal With China on Everything As ‘Trump Insider’ Begins To Close Bitcoin Shorts- Is A BTC Recovery Ahead?
- Just-In: Changpeng “CZ” Zhao Counters Peter Schiff, Says “Tokenizing Gold Is Not On-Chain Gold”
- $240 Million Hacked Crypto Exchange WazirX Reopens Deposits But Faces Community Backlash
- Expert Flags Pi Network Team as Source of Selling Pressure After Reported 1.2M PI Dump
- BNB Price Forecast: Analysts Eye $1500 Ahead of Fresh Coinbase and Robinhood Listings
- XRP Price Classical Pattern Points to a Rebound as XRPR ETF Hits $100M Milestone
- Chainlink Price Eyes $27 Rebound as Whales Accumulate 54M LINK
- Pi Network Price Wedge Signals a Rebound as Key Upgrades Raise Utility Hopes
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
