Ryan Selkis, CEO of crypto-intelligence firm Messari, sees more negative events in the financial world, including bank failures, in the near future. He sees bitcoin as a "life raft and a peaceful exit option" in a disaster, predicting that its price could soar to $100,000 within the next 12 months.
In a recent tweet, Selkis shared his thoughts on the future state of the financial world and how these possible factors could affect Bitcoin.
He believes the ongoing banking crisis is far from over and expects more collapses in the coming weeks. Silvergate Capital, Silicon Valley Bank and Signature Bank are among the latest to be shut down by regulators. SVB one of the 20 largest U.S. financial institutions before its collapse filed for Chapter 11 bankruptcy protection on March 17. Serkis predicted that the Fed will stop raising interest rates soon and focus on other monetary tools, such as quantitative easing (QE), to fight inflation. It has yet to announce its decision at the next FOMC meeting on March 22.
Quantitative easing is another policy that central banks can implement to reduce inflation. It allows them to buy government bonds and other financial instruments, such as mortgage-backed securities (MBS), to improve stagnant economic activity. Interestingly, this method is usually used when interest rates are close to zero, not when they are at the record level of 4.75% in the United States.
Messari's CEO believes that all of these events could send the price of bitcoin skyrocketing, pushing it to $100,000 within the next year. He sees it as a lifeboat and a "peaceful exit option" for all the turmoil currently rocking the financial system. According to him, reaching this milestone could become a reality once institutions join BTC’s ecosystem and are allowed to remain there:
"But the point is to thread the needle so institutions can buy it and defend it with us."
Some crypto players believe the leading digital asset has embarked on a bull run since its valuation surged during the U.S. banking crisis. After all, it emerged during another severe monetary crash the one in 2008 and was intended to be an alternative to the cracks in centralized financial entities. People's savings stranded in institutions could be exploited due to bank runs or other adverse events, but Bitcoin's decentralized nature avoids this problem (especially if the storage is stored in cold wallets).
