Why is Bitcoin’s Next Target $100K?
Bitcoin (BTC) may be heading towards the psychological $100,000 mark as the “digital gold” narrative gains more prominence amid another bank crisis in the United States.
At least 63 US banks are on the brink of bankruptcy.
In the year At least 63 US banks were on the brink of bankruptcy in the first quarter of 2024, compared to 52 banks that were on the “troubled bank list” in the third quarter of 2023, according to the Federal Deposit Insurance Corporation's (FDIC) quarterly report. May 29.
The banks also posted $517 billion in unrealized losses, up $39 billion from the previous quarter, the ninth consecutive month of “unusually high unrealized losses,” according to the FDIC.
“Higher mortgage rates in the first quarter and large unrealized losses on home equity-backed securities led to the overall increase. This is the ninth straight quarter of unusually large losses since the Federal Reserve began raising interest rates in the first quarter of 2022.” is it.
Following the sudden collapse of Silicon Valley Bank (SVB) and the voluntary liquidation of Silvergate Bank, the health of the US banking system has become a concern since March 2023. Signature Bank was forced to close by New York regulators on March 12, two days after Silvergate Bank was released.
In response to the failures, the Federal Reserve created the Bank Term Funding Program (BTFP) – in return for providing bank loans of up to one year against “qualified assets” as collateral.
According to BitMEX co-founder and former CEO Arthur Hayes, this emergency measure is what started the Bitcoin bull run in 2023.
This has led investors to seek fixed supply assets like Bitcoin, Hayes argued in a keynote address at Korea Blockchain Week on September 5.
“I, and the rest of the market, have actually seen that they've admitted that they created this problem – the structure of the banking system – and that's one of the ways you can fix it: print more money.”
Bitcoin rose 26% from $21,900 to $28,054 in the week of March 13, 2023.
Moreover, the price of BTC has risen more than 148% since the beginning of the banking crisis in March 2023 to trade around $70,000.
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The FDIC report confirmed the price action model of Realvision chief analyst Jamie Coates, who expected Bitcoin to find strong support above the $63,000 mark before moving further higher.
Coutts wrote in a June 4 X post:
After some nice bullish price action since March, my boring Bitcoin Trend model has sparked. DXY is down, yields and corp spreads are low. Baby, do you smell that smell? That is the smell of central bank liquidation in the air…”
BTC break target of 100 thousand dollars
On the daily chart, the price of Bitcoin has continuously posted higher lows since the beginning of May. If this chart pattern continues, Bitcoin price could climb to new all-time highs in the next few weeks based on the chart below.
Based on historical chart patterns, Bitcoin price may be setting up towards the $100,000 mark. For example, crypto analyst Trader Tardigrade, in a June 5 X post, wrote:
“I'm not surprised that Bitcoin broke the recent Bull Pennant after the Bull Flag breakout. Both the Bull Pennant and the Bull Flag are promising chart patterns. The next rally could reach over $100K.”
Bitcoin ETF earnings are back.
Inflows from the United States to Bitcoin exchange traded funds (ETFs) may contribute to Bitcoin's upward trend. In the year Since June 4, the US Bitcoin ETF has recorded its fifteenth consecutive day of net positive gains.
RELATED: Bitcoin ETF to Watch as BTC Price Passes $71,000
Institutional income from ETFs has been a significant part of Bitcoin's current rally to new all-time highs. In the year On February 15, Bitcoin ETFs accounted for 75% of new investment in the world's largest cryptocurrency, rising above $50,000.
However, Bitcoin faces strong resistance at the $72,000 mark. A break above the $72,000 mark would eliminate more than $922 million worth of total leveraged short positions, Coinglass data shows.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
