Bitcoin: what if the recovery of the First Republic Bank had an impact on prices?

Bitcoin (BTC) remains on a rather positive trend since the beginning of the year. Several analysts have announced the maintenance of this dynamic, if not the explosion of its price. A potential intervention by the Federal Reserve (Fed) in the banking market could be the driver.

The rise of bitcoin, driven by the refloating of the First Republic Bank?

BTC could break new all-time highs by 2024 according to Matt Hougan, Chief Investment Officer at Bitwise Asset Management. Arthur Hayes, the co-founder of the BitMEX platform thinks the same, even if his projection seems differently motivated.

In a tweet shared on Saturday April 29, the official explained what he thinks makes this prediction possible. If this possibility is likely, it is essentially because of the possible intervention of the Fed in the banking market.

Indeed, the banking institution could inject funds to try to save banks like the First Republic Bank (FRC). The latter, which is not favorable to bitcoin and other cryptos, is going through unprecedented difficulties. And uncertainty reigns around the viability of this bank which operates 93 offices in 11 states of the United States.

Hayes’ idea is that because of its relative importance, the FRC could therefore benefit from the assistance of the Fed. This support relates to the Bank Term Funding Program. An initiative through which nearly $2 trillion in liquidity will be provided to banks in difficulty. This, in order to help the latter to cover the depositors.

For Arthur Hayes, such an injection of liquidity into the banking market should only be positive for risky assets. Among these is bitcoin, whose prices are currently hovering around $29,600.

For this time, the co-founder of BitMEX did not comment on the next valuation of bitcoin. According to crypto analyst Plan B, BTC could be worth $200,000 by the end of the year.

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