The price of Bitcoin faces Catalysts of $ 482 billion

The price of Bitcoin gathered above $ 95,000 and hovered at their highest levels of February 24. February continued with a recent assembly.

In the course of Bitcoin (Btc) Recovery is started by recent optimism that surrounds the potential trade between the United States and China.

Bitcoin and other Altcoys have jumped after Trump hinted that he would not evaporate Jerome Powell, the chairperson of the Federal Reserve. Trump changed his mind at Tariffs and Powell’s shooting after recent bond market prevalent, who led Bond Rigilantes.

Bitcoin now has another main catalyst that could push its price for a longer term: breeding unrealized losses among American banks.

The recent season of the bank’s earnings revealed that American banks maintain over 482 billion in unrealistic losses. These unrealized losses derive from longer deviations with treasury bonds that banks purchased during the era of low interest rates.

Interest rates increased from almost zero during a pandemic to over 4% today. This increase has caused the value of existing securities from fixed income, because their returns are now less attractive compared to newly made bonds offered by larger returns.

A good example is a ten-year state bond that was issued in 2020. years, when returns were near zero. Today, similar bonds return between 4% and 5%.

Some banks that are most affected by unrealized losses are Bank of America, Charles Schwab, JPMorgan Chase and Wells Fargo.

The challenge for banks is that they cannot easily sell these bonds without the realization of large losses, which could affect their stock prices. At the same time, the Federal Reserve may be difficult to reduce interest rates, such as Trump was looking for, Since it could lead to greater inflation.

Risk is that one or more banks will end up as The first republican bankwho collapsed in 2023 years because of their high unrealized losses.

Analysts keep in mind that Bitcoin can benefit if these banks can benefit because these risks are growing because it becomes safe assets. An analyst wrote that:

“This amazing structural case for Bitcoin. Because Bitcoin is not just a” hedge fence in inflation “. It becomes a guarantee of the last place as confidence in traditional collateral evaporates.”

Technical price analysis for Bitcoin

The three-day map shows that the price of BTC refused in the last few days. He recently crossed the level of critical resilience to $ 88,666, a double-bottomed neckline that founded earlier this month.

Bitcoin remains above the key resistance to $ 73,805, which indicates the upper side of the glass and hand calculation. He also transferred above the 50-day and 100-day exponentially reliable average, signaling that the bulls remain in control.

Therefore, it is the most probable scenario that the coin rises according to the important resistance to $ 100,000. After that, Bitcoin could fall on its all the time of $ 109,300, followed by Cup and target handle $ 122,000.