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Max Keiser, a prominent financial journalist in the past and the BTC advisor to El Salvador president Nayib Bukele, believes that the current economic turmoil is creating the “perfect conditions” for the world’s flagship cryptocurrency.
Liquidity crisis looms
Keiser commented on a chart showing a massive plunge of the Secured Overnight Financing Rate (SOFR), which serves as a measure of the cost to borrow cash overnight with Treasury securities used as collateral.
X user SightBringer, whose tweet Keiser commented on, pointed out that the 3Y SOFR swap spread is plummeting to an all-time low, meaning that a liquidity crisis could be on the horizon. Banks are having to deal with bigger funding costs in comparison with Treasury yields, which indicates distrust and rising counterparty risk in interbank lending.
SightBringer calls the chart shared by Zerohedge “code red for the monetary plumbing.” His post highlights high chances of rate cuts or even repo injections, and talks about the possibility of executing quantitative easing: “This is exactly what happens before forced liquidity actions (rate cuts, standing repo, QE whispers).”
This post also suggests that Bitcoin could benefit from current market conditions, calling it “reflexive fuel.” If the Federal Reserve intervenes to save the situation, even “quietly,” then BTC will frontrun it, SightBringer says: “This is exactly the kind of “monetary fracture” moment that Bitcoin was designed to thrive in.”
Yuri Molchan"Perfect conditions for Bitcoin": Max Keiser
Max Keiser commented on that, quoting the tweet and calling all of the aforementioned items “perfect conditions for Bitcoin!!”
He said that it is useless to try and fix the fundamental problems with the monetary and banking systems, since it is “too far gone. Never coming back.” He believes it would be wise to use this crisis to adopt a Bitcoin Standard.
Alex DovbnyaBitcoin market performance
Keiser is known for his Bitcoin maximalist, frequently criticizing altcoins as “centralized garbage.” He also believes that within the next few years, BTC is likely to reach $220,000 and then soar as high as to $1.2 million per Bitcoin.
After a failed attempt to recapture $80,000 on Tuesday, Bitcoin plunged by roughly 6.23% overnight, falling to the $75,000 level. Now, it is changing hands at $76,374 after getting rejected at $77,900 earlier today.
Vladislav Sopov
Dan Burgin