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A recent study found that the 2022 crypto bank runs were majorly triggered by whale account holders withdrawing large portions of their funds. Crypto platforms’ run risks arose from allowing unrestricted withdrawals while using funds for risky, illiquid investments, highlighting policy concerns.

A recent Bloomberg Markets Live Pulse survey suggests Bitcoin could be considered a safe haven asset, surpassing traditional options like the yen, franc, or U.S. dollar, amid concerns over the U.S. debt ceiling. The survey highlights a growing interest in digital currencies as an alternative means of asset protection, showcasing their potential in the financial future.

US bank deposits are nearing $17 trillion, possibly signaling a shift towards cryptocurrencies like Bitcoin. Factors like bank failures, inflation concerns, and increased interest rates contribute to this decline, driving investors to explore alternative investment opportunities such as crypto. However, caution and thorough research are necessary before committing to cryptocurrency investments.

Binance experienced a decline in trading volumes and liquidity in Q1 2023 due to U.S. banking failures and termination of its zero-fee promotion. This resulted in increased Bitcoin price volatility and a sharp drop in monthly trading volumes for the BTC-USDT pair.

The Royal Group, managed by Abu Dhabi’s royal family, has shifted its investment stance, moving from US equities to short-term US Treasury bonds, commodities, and cryptocurrency amidst recession concerns. This highlights the potential opportunities cryptocurrencies present as a hedge against traditional market downturns and as a diversification tool in investment portfolios.

This week in crypto: Stagnation due to the Fed’s interest rate hike, Binance’s “CZ” Zhao flags Tron CEO’s suspicious token transfer, crypto-based conspiracies from 2024 Presidential hopeful, reports of Amazon’s possible NFT marketplace launch, and El Salvador incentivizes tech innovation.

The recent collapse of major banks has raised concerns about financial infrastructure stability, leading to increased skepticism about centralized banking policies. This may result in a significant rise in cryptocurrency and NFT prices, with more people turning to Web3 alternatives for improved flexibility, efficiency, and decentralized finance solutions across multiple industries.

Weekday trading volumes in the crypto industry have risen by 16%, while weekend trading volumes dropped by 10% due to the closure of Silvergate Exchange Network (SEN) and Signet, and changing U.S. regulations. However, weekend crypto demand remains strong, reflecting the market’s resilience.

Despite Federal Reserve Chairman Jerome Powell’s positive remarks on the US banking sector, regional banks’ share prices have plummeted, raising concerns about the stability of the traditional banking system. On the other hand, cryptocurrencies and blockchain technology continue to gain momentum in the financial landscape, offering potential opportunities for prudent investors.

Presidential candidate Robert F. Kennedy supports cryptocurrency and raises concerns about central bank digital currencies (CBDCs) as tools for “financial slavery” and “political tyranny.” However, his controversial viewpoints on other topics may hinder his chances of winning the presidency and gaining widespread traction.

Former Coinbase CTO Balaji Srinivasan ends his $1 million Bitcoin bet early, citing unprecedented events involving Silvergate Bank, Signature Bank, and Silicon Valley Bank, predicting a banking crisis, devaluation of the US dollar, and potential hyperinflation. Srinivasan’s actions raise concerns about the global economy and the unpredictability of Bitcoin and financial markets.

MicroStrategy has seen a profitable quarter, holding 140,000 Bitcoin in reserves and benefiting from its 70% value surge. Despite concerns over cryptocurrency regulations, CEO Michael Saylor’s bullish approach to Bitcoin highlights the potential value of digital assets amid growing economic uncertainties.

As the Federal Reserve prepares to announce its interest rate decision on May 3, the cryptocurrency market faces uncertainty, with bitcoin trading within a tight range. Investors explore alternative safe havens, including cryptocurrencies, in response to ongoing challenges in the banking industry and economic uncertainty, driving the future adoption of digital assets.