Messari founder and CEO Ryan Selkis says Bitcoin (BTC) is about to experience a massive rally as US banks tumble like dominoes.
The head of the crypto intelligence firm. says his 307,400 Twitter followers that Bitcoin is likely to reach six figures in the next 12 months.
He lists five main reasons for his expected Bitcoin price of $100,000, an increase of more than 270% from its current value of $26,606.
Selkis predicts that there will be additional bank failures, and that the Federal Reserve will not only stop raising interest rates to reduce inflation, it will start cutting them.
It also says that more investors will find Bitcoin an attractive “foreign money” asset and that institutions will embrace the king of cryptocurrencies faster 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 coming weeks.
2. Fed Cuts / QE (quantitative easing) is back!
3. BTC rises, sustained moderate inflation.
4. ‘External Money’ / ‘Solid Money’ – $100,000 / BTC.
5. Institutions buy faster than the feds can shut down.
Game.”
Selkis says that the banking crisis is shaking investor confidence and they will put their wealth into assets like cryptocurrencies and gold.
“Individual banking is good (credit), but it requires prudence and trust to work. When trust is gone, people naturally move to the full reserve banks. (Crypto and gold)
Crypto didn’t change accounting rules to favor Treasuries and then covered up bank insolvency.
The feds did it.
He says Decentralized Finance (DeFi) is the direction the world is heading in, claiming to be a more reliable system than traditional financial markets.
“Crypto is a life raft and an optimistic bet on an open financial services + open technology future. It is also a protest vote and a ‘get out’ tool. You want exposure if you can’t trust your institutions. And the message of the past week has been ‘don’t trust your banks or governments.’
selkis too warns how fractional banking, when banks only have to keep a portion of the money deposited in their reserves, is a risky practice that can harm cryptocurrencies. The banking crisis can present a challenge for the cryptocurrency sector since, as it currently stands, traditional financial institutions are needed for clients to move their cryptocurrency platforms in and out of hard currency.
“The Fed and the big banks need to coordinate better on how 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.”
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investment in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are at your own risk, and any loss you may incur is your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, and The Daily Hodl is not an investment adviser. Please note that The Daily Hodl is involved in affiliate marketing.
Featured Image: Shutterstock/Vadim Sadovski/David Sandron
