Michael Van de Poppe, the founder of EightGlobal, has suggested that the recent uncertainty among mainstream banks in the United States could lead to a banking crisis that could trigger the next Bitcoin bull market. This expectation was formulated after the stocks of various banks had taken a major nose dive as a result of the speech given by the Federal Reserve Chair, Jarome Powell, despite his assurances over the markets. PacWest Bancorp topped the losing charts, losing 57.79% of its value, followed by Western Alliance, who lost 28.61%. Other banks, such as Comerica, Zion’s Bancorp and KeyCorp, also showed notable losses in their stock prices.

At the same time of decline in bank stocks, Bitcoin’s price began to surge. This is an indication that the two markets generally move in opposite directions, with the crypto market being a major benefactor of a banking crisis. As such, Poppe believes that the Federal Reserve’s proposed rate cuts in the upcoming months could effectively catapult Bitcoin into a major bull market. However, he also noted that if such cuts are made when the markets are in a freefall, a liquidity correction could lead to a crashing bottom before prices begin to rally again. With no obvious solution to the current banking crisis, Poppe believes that the situation could spell trouble for the United States banking sector and bring massive opportunity for crypto enthusiasts.



Other News from Today