Ryan Selkis, CEO of cryptocurrency intelligence firm Messari, sees bitcoin (BTC) as a “lifeboat and peaceful exit option” for the negative financial events he predicts in the near future, including bank crashes.
On the basis of the above logic, Selkis estimates that the price of bitcoin could go as high as $100,000 in the next twelve months.
New bank failures
In a post on Twitter, Selkis shared his views on the future state of the financial world and how these potential factors could affect bitcoin.
He believes that the banking crisis will continue for some time and predicted that bank failures will continue in the coming weeks.
Silvergate Capital, Silicon Valley Bank (SVB), and Signature Bank are among those recently shut down by U.S. regulators, while SVB – one of the top 20 financial institutions in the U.S. before its collapse – filed for Chapter 11 bankruptcy protection on March 17.
Selkis also predicted that the Federal Reserve will soon stop raising interest rates and focus on other monetary tools, such as quantitative easing (QE), to fight inflation. The Fed is expected to decide at its next FOMC meeting on March 22 whether and to what extent there will be further rate hikes.
QE is another policy used by central banks to reduce inflation rates. It allows them to buy government bonds and other financial instruments, such as mortgage-backed securities (MBS), in an effort to improve stalled economic activity. What is interesting in this case is that this method is usually used when interest rates are close to zero, not when they have reached record levels such as 4.75% in the US.
Bitcoin’s Reaction
The CEO of Messari believes that all these events could lead to a rise in the price of bitcoin, even to $100,000 next year. He sees it as a “lifeboat” and a “peaceful way out” of the turmoil currently rocking the financial system.
In his opinion, the achievement of this milestone could become a reality once institutions are allowed to join the BTC ecosystem and remain there.
Some participants in the cryptocurrency industry believe that the leading digital asset has already begun an upward trend, as its valuation increased significantly during the U.S. banking crisis.
After all, it was created in the midst of another severe currency crash – that of 2008. It is meant to be an alternative to the cracks in central financial institutions.
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