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The Federal Deposit Insurance Corporation (FDIC) has recently reported that total bank deposits in the US have experienced a 2.5% decrease in the first quarter of the year. This record dip, unseen in the past 39 years, might potentially benefit the key players of the cryptocurrency market, such as <a href="https://en.coin-turk.com/bitcoin-displays-lower-volatility-than-tech-giants-meta-and-amazon/" target="_blank" rel="noopener" data-wpel-link="internal">Bitcoin</a> (BTC) and altcoins. 
<h2 id="us-bank-deposits-outflowed-472-billion-dollars-in-3-months">US Bank Deposits Outflowed 472 Billion Dollars in 3 Months</h2>
In just three months, US bank deposits saw an outflow of $472 billion. This notable figure, reported in FDIC&#8217;s recently published quarterly review that reflects Q1 2023 banking data, has set a 41-year record. The report states that &#8220;this quarterly decline in bank deposits is the largest reported in the QBP since data collection began in 1984. This marks the fourth consecutive quarter of lower bank deposit levels being reported in the sector.&#8221; 
The FDIC identifies the primary cause of this escape from bank deposits to be linked to uninsured deposits. The current maximum insured amount set by the FDIC for bank deposits is $250,000, and it appears that deposit owners are moving to protect their deposits exceeding this amount. 
<h2 id="the-impact-of-declining-total-bank-deposits-in-the-us-on-cryptocurrencies">The Impact of Declining Total Bank Deposits in the US on Cryptocurrencies</h2>
The decline in bank deposits follows the bankruptcies of Signature Bank, Silicon Valley Bank, and First Republic, largely triggered by the Federal Reserve&#8217;s (Fed) aggressive interest rate hikes. As US deposit owners are leaving the banking system, there have been significant cash inflows into money market funds on a weekly basis. According to Crane data, assets held in money market investment funds reached a record level of $5.6 trillion in the first quarter of the year. 
Market experts and observers underline the potential positive effect of the decline in total US bank deposits on cryptocurrencies. They point out that while bank deposits are tied to centralized financial institutions and subject to government regulations, cryptocurrencies, generally having a decentralized structure and providing individual control and anonymity, could be attractive for those seeking personal financial freedom. Furthermore, they emphasize that cryptocurrencies being globally accessible and liquid as a cross-border asset class may lead investors to turn to the cryptocurrency market as a safe haven, particularly to Bitcoin and specific altcoins. 
In fact, the bankruptcies of Signature Bank, Silicon Valley Bank, and First Republic triggered an increase in the largest cryptocurrency, Bitcoin, which had risen to $31,000. 
The post <a rel="nofollow" href="https://en.coin-turk.com/cryptocurrency-market-to-benefit-as-us-bank-deposits-see-record-decline-in-decades/" data-wpel-link="internal">Cryptocurrency Market to Benefit as US Bank Deposits See Record Decline in Decades</a> appeared first on <a rel="nofollow" href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.

Cryptocurrency Market to Benefit as US Bank Deposits See Record Decline in Decades

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