Bitcoin Rises: Balaji Srinivasan Sees $1M Price Target On Banking Crisis

Major coins traded mixed on Sunday evening following UBS Group’s (NYSE: UBS) acquisition of Credit Suisse Group AG CS  for nearly $3.2 billion earlier in the day, as part of the Swiss authorities’ emergency plans to protect the nation’s financial stability.

Cryptocurrency Gains (+/-) Price (Recorded 9:30 p.m. EST)
Bitcoin +2.45% $27,829
Ethereum -0.03% $1,781
Dogecoin +0.96% $0.074

What Happened: Apex cryptocurrency Bitcoin BTC/USD rose to its highest trading price of the day at $28,459, before settling to a lower level at $26,877. Ethereum ETH/USD was down 0.33% at below $1,800. Dogecoin DOGE/USD was trading at $0.074, up 0.96% in the last 24 hours.

At the time of writing, the global cryptocurrency market capitalization stood at $1.17 trillion, an increase of 1.13% over the last day.  

U.S. stocks closed lower on Friday, as investors retreated from positions in First Republic and other banking stocks amid lingering worries regarding the health of the banking sector. The S&P 500 declined 1.10%, and the Nasdaq Composite dropped 0.74%.

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News Highlights: Former Coinbase COIN CTO Balaji Srinivasan on Saturday said on Twitter that an impending global banking crisis could take Bitcoin to a whopping $1 million in less than 90 days. Since the tweet, Bitcoin is up 20%.

According to Srinivasan’s forecast, a US banking crisis would lead to an American dollar deflation and an eventual hyperinflation scenario, pushing Bitcoin’s value to the unprecedented million mark. 

The $3.2 billion acquisition of Credit Suisse by UBS Group earlier today is part of an emergency plan orchestrated by Swiss authorities to maintain the country’s financial stability. The Swiss National Bank committed to back the deal with a liquidity line of over $100 billion.

Analyst Notes: Crypto analyst Michaël van de Poppe believes that Bitcoin’s position at $26,800 marks a key support level and is likely to foster further appreciation. He is expecting a likely push towards $28,500-29,200, followed by a pullback towards $25,000, before continuing the rally towards $40,000. 

Pseudonymous trader DonAlt tells his 48,900 YouTube subscribers that Bitcoin looks really, really good on the monthly timeframe after taking out resistance at $24,000. 

“Bitcoin hasn’t looked this good in a long, long time. Let’s be real right? When we look at the chart, we haven’t had any bullishness since the all-time high on the monthly. It’s been a complete sh*tshow. Every resistance did its job. There was really no bounce whatsoever. And technically speaking, if this monthly closes above resistance around $24,000, that’s actually the confirmation of the breakout, the first bullish signal. I think that could run for a little bit.”

Analyst Justin Bennett said the current market for crypto is one to watch. With prices already reaching a peak, Bennett highlighted the importance of bulls in defending areas such as $26,500 to determine whether this rally will be the peak or not. 

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