63 US Banks at Risk: Bitcoin Eyes $100K
3 min read
63 US Banks at Risk: Bitcoin Eyes $100K
Bitcoin (BTC) appears to be edging closer to the significant $100,000 milestone as its reputation as “digital gold” strengthens, especially with the emergence of another potential banking crisis in the United States. Notably, around 63 U.S. banks were perilously close to insolvency in Q1 2024, which marks an increase from 52 banks listed as problematic in Q3 2023, based on the Federal Deposit Insurance Corporation (FDIC)’s report released on May 29.
These banks are collectively showing $517 billion in unrealized losses, an increase of $39 billion from the previous quarter. This continues an unsettling trend of nine straight months characterized by unusually high unrealized losses. These losses have been primarily attributed to rising mortgage rates, which have, in turn, affected residential mortgage-backed securities. This issue has persisted since the Federal Reserve began raising interest rates in early 2022.
The state of the U.S. banking system has been a mounting concern since March 2023 following the sudden failure of Silicon Valley Bank (SVB) and the voluntary liquidation of Silvergate Bank. Adding to the turmoil, Signature Bank was compelled to cease operations by New York regulators shortly after Silvergate Bank’s liquidation. In a bid to manage these crises, the Federal Reserve initiated the Bank Term Funding Program (BTFP), which extended banking loans of up to a year, using “qualifying assets” as collateral.
The introduction of the BTFP has played a crucial role in sparking the Bitcoin bull run observed in 2023. This was highlighted by Arthur Hayes, BitMEX co-founder, and former CEO, during a speech at Korea Blockchain Week on September 5. Hayes suggested that this move led investors towards assets with fixed supplies like Bitcoin, interpreting the program as an acknowledgment by the authorities that they had created deep-rooted issues within the banking system, remedying it partly by printing more money.
In the wake of these events, Bitcoin surged from $21,900 to $28,054 in just a week. Since the banking crisis erupted in March 2023, BTC’s value has skyrocketed over 148%, currently trading at around $70,000. This ascent aligns with the predictions of Jamie Coutts, the chief crypto analyst at Realvision, who foresaw Bitcoin stabilizing above the $63,000 level before resuming its upward trajectory.
BTC’s price movements have matched the anticipated model, as spelled out by Coutts in his June 4 social media update. Historical patterns suggest that Bitcoin might be setting the stage for a breakout towards $100,000. Crypto analyst Trader Tardigrade underscored this possibility, highlighting a recent uptick in a bullish chart formation. Both the Bull Pennant and Bull Flag configurations hinted at a potential surge beyond $100,000.
Adding fuel to this expectation is the ongoing inflow into United States spot Bitcoin exchange-traded funds (ETFs). As of June 4, Bitcoin ETFs in the U.S. had recorded fifteen successive days of net positive inflows. These institutional investments have been pivotal to Bitcoin’s rally towards new record highs, with ETFs accounting for approximately 75% of fresh investments in Bitcoin as it surpassed the $50,000 threshold earlier this year.
Bitcoin may face considerable resistance around the $72,000 mark. A decisive break above this level could potentially lead to the liquidation of over $922 million in cumulative leveraged short positions, based on data from Coinglass. The dynamics between Bitcoin’s rising appeal amid economic uncertainties and its resistance levels will likely set the stage for its performance in the coming months.
Arthur Hayes made a great point about the BTFP and Bitcoin’s rise. Wise words! 🧠📈
Bitcoin’s resilience in facing resistance levels is commendable!
Jamie Coutts’ predictions are spot on. Exciting times for Bitcoin ahead! 💹📈
BTC hitting new highs amid a banking crisis? Truly remarkable!
Bitcoin breaking the resistance could be huge! Let’s keep our eyes peeled! 👀🚀
From banking crises to Bitcoin booms, the future of finance is evolving fast!
The continual rise of BTC showcases the evolving trust in digital assets! 🔥💹
When traditional banks fail, people turn to Bitcoin. It’s the future!
Amazing to see institutional investments fueling Bitcoin’s surge!
Another banking crisis should be a warning sign, not a go-ahead to invest in something as unstable as BTC .
Surpassing $100,000 would be a historical moment for Bitcoin! 🔥🌐
Crypto analysts like Coutts and Tardigrade give us hope for Bitcoin’s future. Exciting times!
All these bullish chart formations are just smoke and mirrors for inexperienced investors. Proceed with caution .
Cheers to Bitcoin hitting new heights despite ongoing economic challenges! 🍾💹
Bitcoin ETFs with positive inflows signify strong institutional faith in BTC! 💼🔗
BTC’s performance is truly impressive, especially amidst banking woes!
People are getting way too optimistic about BTC. Remember, what goes up must come down .
Sure, Bitcoin surged, but it also crashes just as hard. Invest only if you’re ready to lose everything .
In a world of banking crises, Bitcoin stands strong. Digital gold indeed!
Digital gold becoming a safe haven in uncertain times
Its incredible how Bitcoin continues to prove its worth in tough times!
Impressive rise from $21,900 to $70,000! BTC is on fire!
BTC’s bullish patterns are undeniable. $100,000, here we come! 💸🌕
These crypto ETFs and the ‘bull run’ narrative just lure people into a trap. Be smart and stay away .
Investing in Bitcoin amid a banking crisis? That’s like betting on a sinking ship to float. Utterly reckless 🚢😤.
BTC rising because of banking turmoil? Seems more like a diversion from real economic solutions. This isn’t sustainable .
BTC’s growth is a testament to its reliability as a store of value.
US banks are crumbling and people think BTC is a safe haven? LOL, talk about jumping from the frying pan into the fire .
Bitcoin hitting $100k would be monumental! 🚀🌕
Bitcoin hitting $100,000? I highly doubt it! The volatility and market manipulation are too much .
Bitcoin’s stability amidst market shocks proves its strength. 🚀💪
Bitcoin continues to be a game-changer in the financial space. To the moon! 🚀🚀
Bitcoin’s rally towards $100k is the beacon of hope during financial uncertainty!