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Investing.com – Appearing to benefit from the banking crisis and other factors, the price soared throughout the week, hitting a high near $28,000 on Friday, and remains strong as the weekend kicks off.
However, some believe that the rise in the price has only just begun, and that new absolute records are on the horizon.
Ryan Selkis, founder and CEO of Messari, a leading crypto market analysis firm, is part of this camp, and predicts a massive rise in Bitcoin as US banks fall like dominoes.
In a tweet published on Friday, he indeed cited 5 factors that he believes should push Bitcoin to $100,000, an increase of more than 270% compared to the current price.
“My rough prediction for the next twelve months:
1. More bank failures in the next two weeks.
2. Fed cuts / QE (Quantitative easing) are back!
3. BTC Climbs, Sustained Moderate Inflation.
4. Outside Money/Sound Money – $100,000/BTC.
5. Institutions are buying faster than the feds can close. “
In another tweet, Selkis claimed that the banking crisis is shaking investor confidence and that they will put their wealth in assets such as crypto and .
“Fractional banking is good (credit), but it requires caution and trust to work. When trust disappears, people logically go to full-reserve banking. (Crypto and gold).”
He also pointed out that “cryptocurrency did not change accounting rules to favor Treasury bills, then hide the insolvency of banks”, asserting that “it was the federal authorities who did it”.
Because of this, decentralized finance (DeFi) is, he says, “a more reliable system” than traditional markets, and is the direction the world is heading in:
“Cryptocurrency is a life raft and an optimistic bet on a future of open financial services and open technology. It’s also a protest vote and an exit tool. You want to expose yourself if you can’t do trust your institutions, and the message for the past week has been “don’t trust your banks or your governments”.
Finally, he suggested that contrary to what regulators claim, it is the banks that create problems for cryptocurrencies, and not the other way around, criticizing in particular the practice of bank splitting, which consists of banks holding only one part of the money deposited in their reserves, which he believes can harm the cryptocurrency.
Indeed, he explained that since traditional financial institutions are necessary for customers to transfer their currencies to crypto platforms, the banking crisis is indeed a challenge for the cryptocurrency sector.
“The Fed and big banks need to coordinate better to protect cryptocurrencies from systemic risks in the US banking system. Fractional banking is risky. Don’t invest more than you can afford to lose. It has potential , but only if it is built safely with consumer protection in mind.”