The collapse of PacWest Bancorp, Western Alliance, and Metropolitan in the first week of May 2023, caused panic among investors, leading to the suspension of trading in shares of all three financial institutions. While everyone is still reeling from this catastrophe, Bitcoin is showing resilience by gaining 2% and surging to $28.5 thousand after a recent fall.
The question is, does this mean that fiat money is losing its value, or does it indicate that the market is becoming more mature and less affected by micro factors?
“Buy Bitcoin, ASAP!”
Max Keiser, a prominent Bitcoin advocate, believes that fiat money is on the brink of collapse, and all fiat currencies are spiraling toward zero. He even went so far as to say that US banks and the Federal Reserve are technically insolvent. So what does he recommend?
“Get some BTC asap,” he urges his followers.
Interestingly, despite Bitcoin’s somewhat flat performance immediately following yesterday’s FOMC meeting, the cryptocurrency saw a significant increase in the hours that followed, eventually returning to the $29,000 level. Like Bitcoin, altcoins have been on an upward trajectory, with daily increases averaging a few percent.
The Community Reacts
Keiser is not the only expert to have this point of view. According to cryptocurrency specialist Michael van de Poppe, the current scenario of collapsing banks formulates an extremely bullish scenario for Bitcoin
“If Bitcoin manage to break above the $29,200 level,” he says, “it may trigger new highs.”
Additionally, crypto enthusiast Cathie Wood, CEO of Ark Investment, predicted earlier this year that Bitcoin would reach a value of $1.48 million by 2030. However, this goal seems overly optimistic and unachievable.
However, market data suggests that as the fiat money system collapses, more and more people are looking to Bitcoin as a reliable store of value despite the fact that its current trading price is between $28,300 and $29,150. With analysts anticipating Bitcoin to reach new heights, investing in cryptocurrency could be a good way to hedge your bets in the current economic climate.
