Cryptocurrencies are emerging as an appealing alternative for investors looking for a non-sovereign store of value. Bitcoin and Ether have been trending downward over the past week, as investors search for a new price catalyst. Market concerns remain focused around low liquidity, with seemingly small selloffs having an outsize impact on price. A banking crisis, such as the recent outflow of deposits at PacWest Bancorp which sent the stock price down 22%, failed to trigger significant investment in cryptocurrencies. Cryptocurrency analysts expect that the anticipated US debt ceiling negotiations could potentially create market volatility which might encourage demand for non-sovereign assets such as Bitcoin and Ether. NYDIG's Global Head of Research, Greg Cipolaro, compared the market sentiment to the 2011 debt ceiling crisis and stated that “It might be that bitcoin, as a non-sovereign issued store of value, is seen as a valid investment option for those seeking to insulate themselves from the machinations of politicians and monetary policy setters”. For now cryptocurrency market remains bearish with all major coins being in the red and the CoinDesk Market Index showing overall market decline of 3.7%.



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