Bitcoin To ‘Take Another Leg Up’ As Trillions Could Potentially Go Into Saving First Republic Bank: Arthur Hayes

BitMEX co-founder and crypto veteran Arthur Hayes is predicting Bitcoin (BTC) is going to rally on the latest US banking troubles. Hayes tells his 376,200 Twitter followers that he believes the current uncertainty around First Republic Bank (FRC) will likely cause the Federal Reserve to inject more liquidity into the market, which could send risk assets like BTC higher. Hayes says with a possible Federal Deposit Insurance Corporation (FDIC) takeover of First Republic Bank due to its financial uncertainty, the Feds may expand the emergency bank loan program it established last month in a move to save ailing banks. The Bank Term Funding Program offers one-year loans with the intention of easing liquidity pressures and helping banks cover depositors. Some have estimated this could result in up to $2 trillion in liquidity based on the number of banks that could use it. According to Hayes, certain loan collateral requirements limit the financial help the federal program can offer First Republic. But Hayes believes this may prompt the Feds to expand the program eligibility requirements, resulting in more market liquidity. “Another Friday, another US bank on the brink of being deaded by the FDIC. The issue with FRC is that their balance sheet has few treasuries and a lot of other dog shit like commercial real estate loans which are not eligible collateral for the Bank Term Funding Program. Therefore, unless some muppet bank decides to bail out FRC, expect over the weekend the Bank Term Funding Program is expanded to allow other types of loans to be eligible to be swapped for freshly printed dollarz (US dollars). And then BTC will take another leg up as another few trillion dollars are added to the tab. Money Printer go Brrr!!!” Bitcoin is trading for $29,416 at time of writing, down 0.4% in the past 24 hours. Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox Check Price Action Follow us on Twitter, Facebook and Telegram Surf The Daily Hodl Mix Generated Image: Midjourney The post Bitcoin To ‘Take Another Leg Up’ As Trillions Could Potentially Go Into Saving First Republic Bank: Arthur Hayes appeared first on The Daily Hodl.