Age of the Bitcoin BanksWhile Bitcoin exploded, the US banks plummeted.
While Bitcoin is picking up momentum and is literally exploding, Wall Street is bleeding (except for technology stocks), especially the US banks were clearly in decline. The shares of Goldman Sachs, JPMorgan Chase, and the shares of Bank of America were among the losers on the floor. While stocks were largely able to recover from their daily lows by the end of the day, the weakness of the sector was not hard to miss.
The current situation is particularly precarious for the Bank of America, especially since the prices are currently just above an important support level. The bottom at $23 is clearly defined. If this level of support breaks, things will look very bleak for Bank of America.
There was a clear sector rotation in yesterday’s US trading session.
While banks and numerous other industries were penalized, the money went mostly to the technology, pharmaceuticals, biotechnology, and healthcare sector. Now it remains to be seen whether this was only a short-term event that emerged after the elections in the USA, or whether this industry shift will be permanent.Age of the Bitcoin Banks
In my opinion, a new age in the banking sector has started. The old banks will be forced to adapt or they will become obsolete.
In the eyes of investors worldwide, bitcoin becomes more and more a hedge against inflation. Bitcoin is decentralized and anti-inflationary. Nobody can freeze your funds and the supply of BTC is fixed, which means that its value cannot be manipulated through money printing, in the way that any fiat currency can.
Crypto services are rising, and ready for a takeover, seeking to implement blockchain systems with an eye on convenience and financial inclusion.
Giants like Kraken, Binance, Bitpanda, Coinbase, and others, will be the banks of the future, Kraken already received a US banking license, for me a clear signal the a...