BitMEX Founder Arthur Hayes Says US Banking Crisis Driving Bitcoin Price, Marks First Republic ‘Dead Bank Walking’
BitMEX founder Arthur Hayes says the price of Bitcoin (BTC) is being driven by the recent US banking crisis while calling First Republic a “dead bank walk.”
In a new thread, Hayes says that the banking crisis will not end until the Federal Reserve cuts short-term interest rates, adding that the uncertainty surrounding the Fed’s actions is driving up the price of both gold and the royal crypt.
“The American banking crisis is not over. Until the Fed cuts short-term rates below, I think, 2% and steepens the yield curve, we will see bank after bank bite the dust and depositors will play deposit roulette whether or not [US Treasury Secretary Janet] Yellen bails them out.
This uncertainty is what drives outside money like gold and BTC higher.”
According to Hayes, First Republic is on limit of collapse and it would be surprising to see it through the weekend without being seized by the Federal Deposit Insurance Corporation (FDIC).
“When this bank bites the dust, probably later this week, we will be closer to the market and realize that the entire US bank deposit base is de-facto [guaranteed] by [government]. Massively inflationary, that’s why XAU (gold backed token) and BTC are rising [the] news, that [First Republic] is a dead bank that walks.”
Earlier this week, shares of First Republic fell by over 50% as customers withdrew over a hundred billion dollars from the bank, fueling the US banking crisis of 2023. Recently, it became known that the US government will not step in to bail out the troubled bank .
Bitcoin is trading at $29,106 at the time of writing, down 2.4% over the past 24 hours but up 7% from its seven-day low of $27,243.
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