Bitcoin can benefit from a liquidity crisis following the banking crisis of 2023.
Jack Mallers (CEO of Strike) sees that the financial stress is a confirmation for Bitcoin.BTCThe Federal Reserve will undoubtedly respond to the impending liquidity crises, and this is what he believes.
“Bitcoin is accurately smelling trouble right now,” He said Primal’s social media platforms on Friday.
“The US is going to have to inject some of that sweet, sweet liquidity soon and print a ton of money or else their fiat empire goes kaboom.”
Taking over the conversation with X, he said, “Bitcoin is the most sensitive to liquidity. It moves first. It’s a truth machine.”
“Yields are puking, spreads blowing out, and banks are stressed. Bitcoin is working. It smells trouble. When they’re forced to print, it’ll move first again, and outperform everything.”
US Banking Crisis Re-Examined
The march 2023 regional bank crisis was never truly resolved — just papered over with government bailouts and acquisitions.
This created a potential moral hazard. banks They took on excessive risk knowing that the Federal Deposit Insurance Corporation would cover deposits above the FDIC limits.
Wall Street has become increasingly concerned over the health of regional banks in the United States, after the writing off of bad commercial loans. reported The Associated Press published this report on Friday.
Related: Bitcoin hits 15-week low under $105K as US regional bank woes echo 2023
Zions Bank shares and Western Alliance stock fell this week because of loan issues. This triggered broader fears on the market, as confidence in regional bank stocks had not been restored fully after 2023.
US banks are still vulnerable to government-backed guarantees, and not sound financial practices. explained The Kobeissi Message
Bitcoin drops to a 4-month low
Bitcoin’s benefits from the current banking crisis are not apparent yet.
This asset plummeted to its lowest level in four months, $103,850. It lost over $5,000 within a few hours.
The stock has recovered and traded at $107,000 in Asia on Saturday morning, but is still down by more than 15 percent from its high.
“BTC on sale. If this US regional banking wobble grows to a crisis, be ready for a 2023-like bailout. And then go shopping, assuming you have spare capital,” said BitMEX Co-founder Arthur Hayes.
Magazine: Binance shakes up Korea, Morgan Stanley’s security tokens in Japan: Asia Express
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
