🔥 Failling Banks BULLISH For Bitcoin & Gold: But Why?

٣ مايو ٢٠٢٣

Over the last two months there's been several that have gone insolvent and got eventually bailed out by the FED, or have been taken over by larger banks.

Initially, this looming crisis caused a lot of stress in the markets during the first two weeks of March. However, once Silicon Valley Bank got shut down & bailed out we saw a huge bullish move in both Bitcoin (helped by a short-squeeze) and Gold, whilst the Regional Banks ETF continued to make new lows.

Yesterday, there was a another big bank that has gone insolvent and has been taken over by JPMorgan. Stocks fell significantly and the Regional Banks ETF made new lows because of sell-offs in other banks.

This sparked another bullish move in both Bitcoin and Gold because investors are fleeing to safety. Physicals commodities like Bitcoin and Gold don't need a bank. You can buy them and store them either on your own PC or in your house. Furthermore, big banks like JPMorgan and the like saw their balances swell because they are deemed to big to fail, unlike smaller regional banks.

With the FED most likely increasing the interest rates further, there's a decent probability for more (regional) banks to fail. This will most likely be bullish for Bitcoin, since more money will flock to the relative safety that Bitcoin offers.

If the banking crisis will get very severe with, for example, big banks failing, it can spark a massive move of BTC towards >50k. The technicals don't support a move like this, but a macro-related event like big banks failing could trigger a massive influx of buyers.

Future will tell. All we can see now is that regional banks in distress is triggering a flight to 'safe' commodities like BTC and Gold.