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Banks are threatened by Bitcoin – Will BTC hit $16K soon? Circle CEO shares future outlook

Banks are threatened by Bitcoin – Will BTC hit K soon? Circle CEO shares future outlook

Banks are threatened by Bitcoin – Will BTC hit $16K soon? Circle CEO shares future outlook

  • Nicholas Merten says Bitcoin is facing a tipping point this week ahead of the CPI report release.
  • Circle CEO says traditional financial institutions feel threatened by the idea of ​​full reserve banking systems.

Famed YouTuber and crypto analyst Nicholas Merten hinted that the release of the Consumer Price Index (CPI) report later this week would have a huge impact on Bitcoin’s price. In his latest video, Merten told his 500,000+ subscribers that this week is a pivotal period for the leading digital asset. He commented that the previous CPI report caused Bitcoin’s price to fall about 10 percent in 24 hours.

The release of the CPI report is an important event as it has historically impacted the price of Bitcoin significantly. The cryptocurrency market (including bitcoin) and the overall stock market are also trading around their bottoms during this bear season.

However, a positive surprise in the CPI report could lead to bullish financial markets. But if the opposite happens, cryptocurrency and stock prices could fall to lower levels.

Merten states that technical indicators suggest another downtrend for Bitcoin with further price declines. The YouTuber added that the Fed is unlikely to change its aggressive stance until inflation falls significantly and there is a weakening or softening in the jobs market.

He said the Fed would only change its hawkish stance if inflation hits an annualized 2 percent target, which is its main goal. Merten added that the Fed would also welcome a slowdown in the labor market. A full-reserve banking system threatens traditional financial institutions – Jeremy Allaire

Meanwhile, Circle CEO Jeremy Allaire has said that JPMorgan and other traditional financial institutions feel threatened by the idea of ​​a full reserve banking system. Allaire made these claims in a recent interview with Kevin O’Leary, the shark tank investor. He went on to say that banks’ system for moving and tracking money is outdated and less efficient than blockchain technology.

According to him, the blockchain infrastructure is more open, publicly available, auditable, real-time, accessible to and transparent. Allaire claims that major financial institutions like JPMorgan have not yet embraced stablecoins and blockchain technology because they pose a threat to them.

Circle’s CEO explains that a payments stablecoin is like short-term US Treasuries and cash in the Federal Reserve. He also said that stablecoins could be considered the safest digital dollar in the world. like JPMorgan is a loan to the bank that allows them to make more money through lending. Allaire added that a full reserve dollar banking and payment system is an idea whose time has come. However, traditional institutions feel threatened because they base their loan-repayment systems on fractional reserves.

In August 2021, Circle (the company behind the USDC stablecoin) announced plans to become a full-fledged commercial reserve bank under agencies controlled by the US Treasury Department and the Federal Reserve.

 

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