Many U.S. regional banks are facing renewed pressure despite bolstering their finances after the 2023 banking crisis, and Bitcoin could benefit from any liquidity crunch that follows.
Jack Mallers, CEO of Strike, sees the banking pressures as confirmation that Bitcoin (Bitcoin) correctly prices the impending liquidity crisis, arguing that the Fed’s inevitable response will send Bitcoin prices higher.
“Bitcoin is precisely smelling trouble right now.” He said on the social media platform Primal on Friday.
“The United States will have to pump out some of that wonderful liquidity soon and print a lot of money or its paper empire will turn into a disaster.”
Taking the conversation to X, it is He said“Bitcoin is the most sensitive to liquidity. It moves first. It is a truth machine.”
“Yields are vomiting, spreads are exploding, banks are nervous. Bitcoin is running. It smells of trouble. And when they have to print, it will move first again, outperforming everything.”
Renewed American banking crisis
March 2023 Regional banking crisis It was never truly resolved, only covered up by government bailouts and takeovers.
However, this has created a moral hazard, as well Banks He took excessive risks knowing that the government would support deposits beyond the limits of the Federal Deposit Insurance Corporation (FDIC).
Wall Street is increasingly concerned about the health of the country’s regional banks, after bad loans to commercial customers were written off I mentioned According to the Associated Press on Friday.
Related to: Bitcoin hits 15-week low below $105K as US regional bank woes echo into 2023
Shares of Zions Bank and Western Alliance collapsed this week on loan problems, spooking the broader market because confidence in regional banks has not been fully restored after 2023.
The US banking system remains weak, supported by implicit government guarantees rather than sound financial practices. He explained Al Qubaisi’s message.
Bitcoin tanks to 4-month low
Whatever benefits Bitcoin may accrue from this banking crisis, it is not yet clear.
The asset fell to a four-month low of $103,850 on Friday, losing more than $5,000 within hours.
It has since rebounded to trade at $107,000 on Saturday morning in Asia, but is still down more than 15% from its all-time high.
“Bitcoin is on sale. If this regional US banking fluctuation develops into a crisis, be prepared for a 2023-like bailout. Then go shopping, assuming you have spare capital,” He said Co-founder of BitMEX Arthur Hayes.
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