Poppe: US Banking Crisis Could Initiate Bitcoin Bull Market

coinedition.com 3 h    Reading time: ~2 m

Mainstream banks’ stocks tumbled following the speech by the Federal Reserve Chair, Jarome Powell, despite the Chair’s bullish approach and assurances over the markets. Michael Van de Poppe, the founder of EightGlobal, thinks such scenarios could influence a banking crisis that would initiate the next Bitcoin bull market.

In a video analysis uploaded on YouTube, Poppe noted that Powell, in his recent speech, maintained that the banking system is sound and resilient. As a result of Powell’s speech, several banks’ stocks dropped in value, suggesting a disagreement with the Fed Chair’s position.

Poppe observed that some regional banks’ stocks collapsed hours after Powell’s speech. PacWest Bancorp lost 57.79% of its value to top the losing chart, while Western Alliance followed with a loss of 28.61%. Other banks that topped the losers’ list include Comerica losing 10.06%, Zion’s Bancorp losing 9.71%, and KeyCorp losing 6.93%.

Using the Bitcoin 30-minute chart, Poppe explained that while banks’ stocks fell in the aftermath of Powell’s speech, Bitcoin price rallied. He also noted that just like Bitcoin, Gold rallied after the Federal Reserve Chair concluded his speech and Bitcoin moving in tandem with Gold is a good development for the crypto market.

Poppe’s analysis showed that bank stocks and the Bitcoin markets do not move in the same direction. He noted the growing uncertainty among the banks and the increasing tendency of such banks not to trust the assurances of the regulator could spell more doom for the mainstream markets. According to him, the current scenario does not look good for the US banking sector, and the absence of an immediate solution could result in more serious consequences.

Focusing on market projections, Poppe observed that the proposed rate cuts by the Fed in the coming months could lead to a significant bull run for Bitcoin. However, if the cuts take place after the markets have started to drop, there might be a sell-off of Bitcoin in a liquidity correction that could kick in a bottom before prices begin to shoot up again.


Updated: 05/06/2023 — 10:00

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