Messari founder and CEO Ryan Selkis says Bitcoin (BTC) is poised to go on a massive rally as US banks fall like dominoes.
The head of the crypto intelligence firm tells his 307,400 Twitter followers that Bitcoin is likely to hit six figures within the next 12 months.
He names five main reasons for his forecasted price of Bitcoin at $100,000, a more than 270% increase from its current value of $26,606.
Selkis predicts there will be additional bank failures and the Federal Reserve will not only stop raising interest rates to reduce inflation but start cutting them.
He also says more investors will find Bitcoin an attractive “outside money” asset and that institutions will adopt the king crypto quicker than any potential move by the US to restrict or ban it.
“My rough prediction for the next twelve months:
1. More bank failures in the next couple of weeks.
2. Fed cuts / QE (Quantitative easing) is back!
3. BTC climbs, sustained moderate inflation.
4. ‘Outside Money’ / ‘Sound Money’ – $100,000 / BTC.
5. Institutions buy faster than Feds can shut down.
Selkis says that the banking crisis is rattling investors’ confidence and they will put their wealth in assets like crypto and gold.
“Fractional banking is good (credit), but requires prudence and confidence to work. When confidence disappears, people logically move to full reserve banks. (Crypto and gold)
Crypto didn’t change accounting rules to favor Treasuries, then cover up bank insolvency.
The Feds did.”
He says decentralized finance (DeFi) is the direction the world is heading, claiming it is a more trustworthy system than the traditional financial markets.
“Crypto is a life raft and an optimistic bet on a future of open financial services + open tech. It is also a protest vote and an ‘exit’ tool. You want exposure if you can’t trust your institutions. And the message the past week has been ‘do not trust your banks or governments.’”
Selkis also warns how fractional banking, when banks only have to hold a portion of the money deposited in their reserves, is a risky practice that can harm crypto. The banking crisis can pose a challenge for the crypto sector since, as it stands currently, traditional financial institutions are needed for customers to move their hard currency on-and-off crypto platforms.
“The Fed and Big Banks must better coordinate on how to protect crypto from the systemic risks of 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’s built safely with consumer protection in mind.”
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