With heavy liquidation pressure, Bitcoin could fall 13% from $74,800 at current prices. Analysts remain optimistic even though prices are down from record highs and $66,000 is a mirage. Most predict the coin will reach the psychological threshold of $100,000 in the coming days or weeks.
Bitcoin will build on the âdigital goldâ narrative that is gaining momentum amid concerns about the financial stability of US banks, fueling the surge.
An observer on X added that 68 US banks have unrealized losses of more than $500 billion, according to an FDIC study. Their various investment portfolios are primarily affected by investment securities and rising mortgage interest rates.
The FDIC reported that banks had âunusually high unrealized lossesâ for nine quarters. If this continues, these institutions could destabilize US financial markets.
The US banking crisis resembles the 2008 GFC. However, financial instability could benefit Bitcoin and gold. BTC and ETH values ââincrease following declines in SVB, Silvergate and Signature Bank.
If the U.S. FDIC's unrealized losses increase in subsequent quarters, managers may have to review their holdings.
Looking at BTFP and CRE: Is It Time to Consider Bitcoin?
The US Federal Reserve's Emergency Bank Term Financing Program (BTFP), created after bank failures in early 2023, could be crucial in this situation.
Furthermore, the commercial real estate (CRE) sector is unstable. Federal Reserve Bank of Minneapolis President Neel Kashkari recently downplayed the possibility of a widespread disaster, although it is well known that some large banks, especially those with losses, not yet implemented, there is a risk of significant impact.
After the 2007-08 GFC, tougher restrictions will help, but how the system will absorb the shocks of bone fractures remains unclear. The current consolidation could benefit BTC if it happens.
