The growing strain in the broader financial market has been tagged as a yardstick for a more ambitious fundamental that can drive Bitcoin (BTC) price growth according to projections from Messari CEO, Ryan Selkis. Taking to his official Twitter account, Selkis said he believes Bitcoin can touch a $100,000 price target within the next 12 months.
As an expert who runs one of the most versatile crypto analytics platforms in the Web 3.0 world, Selkis gave his projections based on a series of fundamental analyses owing to the woes in today’s current banking ecosystem. With three core banks collapsing thus far this week, Selkis projects that there are bound to be more banking failures within the next couple of weeks.
When Silvergate Bank imploded, regulators and lawmakers wanted to attribute the fall to crypto exposure, however, the collapse of Silicon Valley Bank (SVB) significantly skewed the narrative. The trio of the Federal Reserve, the Treasury Department, and the Federal Deposit Insurance Corporation (FDIC) joined forces to create an emergency funding program to help banks cushion their liquidity crunches.
Thus far, more than $160 billion has been borrowed from the government by banks but per Selkis’ projection, this might not wade off the impending doom in the near term. In view of this, Selkis foresees more Quantitative Easing (QE) from the Federal Open Market Committee (FOMC) in the short term, complementing speculations that the Feds might stop its scheduled interest rate hikes to let the market heal.
Amid all these, Selkis believes more institutions will come to see Bitcoin as the “Outside Money” or the “Sound Money” to safeguard their assets. Based on these sentiments, he believes Bitcoin might see an intense accumulation within the coming year such that it will be impossible for the Feds to shut it down again.
Messari CEO Projects Bitcoin as a Safe Exit
Just as was experienced during the harsh days of the COVID-19 pandemic, the QE from the Feds may send so much fiat into circulation that it may further debase the US Dollar. In this instance, the Messari CEO said firms may choose to use Bitcoin as the exit plan.
“This is an optimistic bet on the future, as BTC is treated as a life raft and peaceful exit option. But the key is threading the needle so institutions can buy it and defend it alongside of us. Best case scenario right now,” he said in the tweet.
The $100,000 projection Ryan Selkis gave as his projection for Bitcoin is a whole mile away from just the $26,533 it is trading at the time of this writing. The digital currency has received a lot of such projections from other industry leaders including PlanB, the inventor of the Stock-2-Flow (S2F) technical indicator, and Ark Invest’s Cathie Wood.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.