Epiq Bankruptcy: “In anticipation of a crisis, it’s time for businesses to look for support in crypto markets”
Experts from Epiq Bankruptcy warned entrepreneurs about the increase in the number of bankruptcies. They also advised to explore options for overcoming the crisis using hedging tools offered by crypto assets.
Epiq pointed to the increasing number of bankruptcies, which indicates the absence of traditional methods of hedging economic risks. For more than a year now, the total number of bankruptcy filings for individuals and companies has only been growing.
In August this year, the number of applications from SME organizations increased by more than 40% compared to the same period in 2022. The total number of bankruptcy filings for the month exceeded 40,000, up almost 20% from a year ago.
“The number will only increase. This highlights the critical role that crisis managers must play in offering effective strategies and informed solutions to emerge from a crisis and navigate alternative markets,” says Epiq Bankruptcy Vice President of Business Development and Revenue Gregg Morin.
Bankruptcy protection filings in the U.S. have reached “dangerous levels” in 2023, similar to those seen during the 2008 recession and the onset of the COVID-19 pandemic in the spring of 2020, according to information provided by stock market expert WhaleWire.
Such spikes in bankruptcies often signal the onset of a major crisis, including a potential stock market crash, according to WhaleWire analysis.
Forbes magazine experts note that the cryptocurrency sector has responded positively to global financial instability in the past and continues to hold strong amid fluctuations in the bond market.
Thus, in the face of a possible recession, investing in trusted cryptocurrencies such as Bitcoin or Ether may represent a protective mechanism. Among the top ten cryptocurrencies by market capitalization, excluding stablecoins, Bitcoin has been relatively resilient, posting minimal declines in August. The price of Bitcoin dropped to just below $26,000 in August, but reached $27,371 by the end of the month.
As a result, BTC fell only 5.2% over the month. Forbes emphasizes that the cryptocurrency as a whole has been stable throughout 2023, while the bond market has faced problems following the Fed’s announcements about the possibility of raising rates. Since the August decline, the price of Bitcoin has increased by 66.6% year-on-year, and the price of Ethereum by 44%.
