According to reports, crypto bulls have been buzzing with excitement over the recent prediction by Balaji Srinivasan, venture capitalist and angel investor, that Bitcoin will hit the $1 million mark within 90 days. The former Chief Technology Officer (CTO) of Coinbase also predicted a US banking crisis that would crash the dollar and spur hyperinflation – a sudden and rapid increase in the price of goods and services.
While some experts believe that such a scenario is unlikely, the fear of a banking crisis has led many to consider Bitcoin as an antidote to unconventional Federal Reserve monetary policies.
After the Silicon Valley Bank’s failure, the Federal Reserve took steps to address the instability in the banking sector by providing liquidity through dollar lending programs. The Bank Term Funding Program (BTFP) is one such measure, which is designed to ensure banking liquidity rather than stimulate the economy or financial markets. The BTFP provides loans to banks to help them meet their immediate financial obligations and maintain liquidity. It is crucial to prevent bank runs that can lead to widespread economic damage.
While some have raised concerns about the potential for hyperinflation or a sudden devaluation of the dollar, investors tend to turn to dollar-denominated assets during times of crisis, as evidenced by the 11% surge in the dollar index during the last half of 2008, even as Lehman Brothers collapsed and caused a global contagion.
In any event, the predictions of a US banking crisis and hyperinflation have fueled the fire of the crypto bull market, with Bitcoin and other cryptocurrencies experiencing significant price gains. Whether Bitcoin will actually hit the $1 million mark within 90 days remains to be seen, but the conversation surrounding the future of cryptocurrencies and their role in the global economy is sure to continue.
The Consensus 2023 conference in Austin, Texas, which will take place from April 26-28, will be crucial for discussing the most important issues in crypto and Web3.
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