Real Vision analyst Jamie Coutts believes that Bitcoin (BTC) is showing a bullish indicator amidst concerns of a potential banking crisis in the US. Coutts, a former Bloomberg analyst, suggests that macro conditions could lead to a surge in Bitcoin’s price. According to the Federal Deposit Insurance Corporation (FDIC), 63 US banks are on the verge of collapse due to $517 billion in unrealized losses. Coutts points out that his Bitcoin Trend model is triggering a positive signal after a period of consolidation since March. He also mentions that the DXY (US dollar index) is down, yields are lower, and corporate spreads are decreasing, indicating the presence of central bank liquidity. Coutts appears to be using a combination of moving averages, profit and loss metrics, and the Slope indicator to make his analysis. He believes that the weakness in the banking industry may lead the Fed to inject liquidity into the markets, which could be beneficial for Bitcoin. The FDIC’s May 29th report states that US banks are facing over $500 billion in paper losses due to exposure to the residential real estate market. These unrealized losses can become a significant liability when banks require liquidity. While the FDIC reassures that the US banking system is not at immediate risk, it warns that inflation, market volatility, and geopolitical concerns continue to exert pressure on the industry. As of now, Bitcoin is trading at $70,889, representing a 2.6% increase in the past 24 hours.
