Meltem Demirors, Chief Strategy Officer of CoinShares, identified the two primary catalysts for Bitcoin (BTC) in the present market environment. And one of them is the banking crisis.
The major issue, according to the expert, is not the banking crisis or a loss of trust in the banking sector.
Instead, Demirors believes that BTC’s price increase will contribute to a return of investor risk appetite and anticipation of a halving next April.
Furthermore, she stated that the association between the price of Bitcoin and global stocks has drastically decreased:
Bitcoin’s correlation with global stocks has dropped to its lowest level, at around 12%.
Demirors believes the Fed’s latest interest rate hike to combat inflation will not harm Bitcoin. However, she believes that a high-interest rate will have an impact on decentralized financing (DeFi) projects.
I don’t believe this is a problem unique to bitcoin. I believe the biggest delay is in decentralized finance, where people have traditionally earned revenue by lending stablecoins or dollar equivalents. And we’ve witnessed a drop in stablecoin returns across a variety of DeFi applications.