According to analyst Jamie Coutts, a key Bitcoin indicator has turned bullish as concerns about a potential banking crisis in the United States escalate.
Banking Crisis Looms
The Federal Deposit Insurance Corporation (FDIC) has reported that 63 US banks are on the brink of collapse due to $517 billion in unrealized losses. This is primarily due to their exposure to the residential real estate market.
Bitcoin Trend Model Triggers
Amidst this banking weakness, Coutts’ Bitcoin Trend model has triggered a bullish signal. He suggests that the Fed may inject liquidity into the markets to address the banking crisis, which would likely benefit Bitcoin.
Bitcoin’s Price Action
As of writing, Bitcoin is trading at $70,889, up 2.6% in the past 24 hours. This suggests that the market is responding positively to the bullish indicator and the potential impact of a banking crisis.
