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Will Bitcoin Reach $100,000 Amid US Banking Crisis?



With heavy liquidation pressure, Bitcoin may fall 13% from $74,800 at current pricing.


Analysts are optimistic despite prices falling from record highs and $66,000 being a mirage. Most predict the currency to reach $100,000, the psychological threshold, in the next days or weeks.


Bitcoin would ride the “digital gold” narrative that's gaining momentum amid fears about US banks' financial stability, accelerating the increase.


One observer on X adds that 68 US banks have over $500 billion in unrealized losses, according to an FDIC study. Their various portfolios have suffered mostly from investment securities and increasing mortgage rates.


The FDIC reports that banks have had “unusually high unrealized losses” for nine quarters. If this continues, these institutions might destabilize US financial markets.


The US banking crisis resembles the 2008 GFC. However, financial instability may benefit Bitcoin and gold. BTC and ETH values rose after the fall of SVB, Silvergate, and Signature Bank.


If US FDIC unrealized losses rise in the next quarters, managers may have to review their holdings.


Looking at BTFP and CRE: Time to Consider Bitcoin?
The US Federal Reserve's emergency Bank Term Funding Program (BTFP), created after early 2023 bank collapses, may be important in this situation.


Further, the commercial real estate (CRE) sector is unstable. The Federal Reserve Bank of Minneapolis President, Neel Kashkari, recently minimized the likelihood of a broad disaster, although it is well known that several major banks, particularly those with unrealized losses, have considerable exposure.


After the 2007-08 GFC, tougher restrictions assist, but how the system will absorb shocks from fractures is unknown. Current consolidation may favor BTC if it occurs.

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