Crypto News: Bitcoin (BTC) has managed to register a massive surge amid the emerging global banking crisis. Bitcoin price is up by a massive 26% in the last 60 days, while several major banks have collapsed. However, the co-founder of cryptocurrency exchange BitMEX is still backing his belief that the banking crisis will lead the Bitcoin value to reach $1 million.
First Republic Bank Set To Collapse?
Reports suggest that U.S. officials getting into urgent rescue talks about the collapsing First Republic Bank (NYSE: FRC). To this situation, Arthur Hayes, former CEO of BitMEX stated that another Friday and another US bank is on the brink of a historic slump by the Federal Deposit Insurance Corporation (FDIC).
Hayes mentioned that the issue with the First Republic Bank is the balance sheet holding few treasuries and a lot of commercial real estate loans. However, these loans are not eligible collateral for the banking funding program.
He added that until some bank decides to bail out the FRC, it is expected that the banking funding program to allow other types of loans to be eligible to be swapped for freshly printed dollars over the weekend. Hayes expects this emerging situation to take Bitcoin price to $1 million.
Fresh dollars printed coming into circulation will allow Bitcoin to have another leg up as another few trillion will be added to the tab. He added that the Fed will lead to fixing the issue by backstopping a larger slice of the US bank balance sheet.
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