The Messari CEO said that companies can choose to use Bitcoin as an exit plan.
Rising tension in the broader financial market has been labeled as a yardstick for more ambitious fundamentals that can fuel Bitcoin (BTC) price growth according to projections by Messari CEO Ryan Selkis. Taking to the official Twitter account of him, Selkis saying he believes that Bitcoin can reach a $100,000 price target in the next 12 months.
As an expert running one of the most versatile cryptanalysis platforms in the world of Web 3.0, Selkis gave his projections based on a number of fundamental analyzes due to the problems in the current banking ecosystem. With three major banks collapsing so far this week, Selkis projects more bank failures in the next two weeks.
When Silvergate Bank collapsed, regulators and lawmakers wanted to attribute the crash to crypto exposure, however, the collapse of Silicon Valley Bank (SVB) significantly distorted the narrative. The trio of the Federal Reserve, the Treasury Department and the Federal Deposit Insurance Corporation (FDIC) joined forces to create an emergency financing program to help banks cushion their liquidity crises.
So far, banks have borrowed more than $160 billion from the government, but according to Selkis’s projection, this might not prevent impending doom anytime soon. In view of this, Selkis foresees more quantitative easing (QE) from the Federal Open Market Committee (FOMC) in the near term, complementing speculation that the Fed may halt its scheduled interest rate hikes to allow the market to recover.
Amid all this, Selkis believes that more institutions will come to see Bitcoin as the “outside money” or “hard money” to safeguard their assets. Based on these sentiments, he believes that Bitcoin could experience intense accumulation in the next year such that it will be impossible for the feds to shut it down again.
Messari CEO Projects Bitcoin as a Safe Exit
As experienced during the harsh days of the COVID-19 pandemic, QE from the feds can send so much fiat money into circulation that it can further degrade the US dollar. In this case, the Messari CEO said that companies can choose to use Bitcoin as an exit plan.
“This is an optimistic bet on the future, as BTC is treated as a life raft and a peaceful exit option. But the key is to thread the needle so that the institutions buy it and defend it together with us. Best case scenario right now,” he said in the tweet.
The $100,000 projection that Ryan Selkis gave as his projection for Bitcoin is a far cry from the $26,533 that is trading at the time of writing. The digital currency has received many of these projections from other industry leaders, including PlanB, the inventor of the Stock-2-Flow (S2F) technical indicator, and Ark Invest’s Cathie Wood.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-life applications of blockchain technology and innovations to drive mainstream acceptance and global integration of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based sites and media. Benjamin Godfrey is a lover of sports and agriculture.
