As Bitcoin (BTC) recently traded over $28,250, up 2.8%, Ether (ETH) following a similar pattern and rose 1.8%, investors once again reacted to the mildly encouraging first-quarter earnings from tech giants Alphabet and Microsoft as well as to the liquidation of a number of bitcoin short positions. The closing of US equity markets seemed to give the much-needed boost and propel the leading cryptocurrency to a new height.

However, the First Republic Bank (FRC) and its financial results affected the S&P 500 and the tech-heavy Nasdaq Composite, both closing down 1.5% and 1.9%, while the Dow Jones Industrial Average was down 1%. This, as well as the yield on the two-year Treasury note sinking 19 basis points to 3.94%, while the 10-year Treasury yield dropped roughly 11 basis points to 3.40%, has given rise to some concern.

Edward Moya, senior market analyst at foreign exchange market maker Oanda, expressed his opinion that the outlook isn’t too bad and that should mean the Federal Reserve can stay on their tightening course with the risks of a June hike still remaining on the table. However, he added that there is a consensus about the future personal consumption being a lot weaker than previously expected.

It is this uncertainty, as well as distrust in institutions, regulations, and compliance and obedience, as well as the lack of guidance and leadership from politicians, that provides the perfect environment for cryptocurrencies to shine. According to Stefan Rust, CEO of data aggregator Truflation, this is the time for crypto to demonstrate its potential to leapfrog into a new modern age of financial innovation, without the need for middle men. If not now, he continued, crypto risks being just another technology providing rails for existing systems and compliance, instead of becoming the revolutionary force it is argued to be.



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