CEO of the crypto intelligence firm Messari – Ryan Selkis – believes that soon, the financial world will see more negative events including bank crashes.
Amid all that calamity, he sees bitcoin acting as a “peaceful exit option”, predicting that the price of the cryptocurrency could soar to $100,000 in the next twelve months.
The CEO shared his thoughts concerning the future condition of the financial world and the effect of those possible factors on bitcoin, which he disclosed in a recent tweet.
Selkis believes the ongoing banking crisis is far from over, as he forecasted additional collapses in the coming weeks. Silicon Valley Bank, Silvergate Capital, and Signature Bank have all been recently closed by regulators. SVB – before its collapse, was one of the top 20 biggest financial institutions in the USA, and on the 17th of March filed for Chapter 11 bankruptcy protection.
He predicted that the focus of the Federal Reserve will shift from the increase of interest rates and move to other monetary tools, such as Quantitative Easing (QE), as they try to battle inflation. However, this decision is yet to be announced as we await the next FOMC meeting on March 22.
QE is another policy that the central banks can engage to help reduce the rate of inflation. It will allow them to make purchases of government bonds and other financial instruments, which will help improve stalled economic activity. However, it is interesting to note that this method is usually used when interest rates are close to zero and not when they have reached record levels like the 4.75% in the USA.
Messari’s CEO believes that all the turbulence currently shaking the financial system will greatly favor Bitcoin and its price. According to him, once the financial institutions join BTC’s ecosystem and are allowed to stay there, reaching that milestone could become a reality.
“But the key is threading the needle so institutions can buy it and defend it alongside us.”
Some participants in the crypto ecosystem believe the leading digital asset is already on a bull run since its valuation climbed significantly during the banking crisis in the USA. Seeing that it came into existence amid the severe monetary crash suffered in 2008 and is meant to be an alternative to the problems associated with centralized financial entities.
Due to a bank run or an adverse event, people’s savings stuck in institutions could be lost, but bitcoin avoids that issue because of its decentralized nature (especially if the funds are stored in a cold wallet).
Featured Image Source: CoinStats
