Artificial Banks Wane: Bitcoin Ushers in Financial Epoch

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This chart shows a view of the top 8 banks in the United States and the charts go back to at least 2008 so you may see how artificial the bubble is.

As the Federal Reserve continues its interest rate hikes, a cloud of uncertainty looms over the banking sector. This trading strategy anticipates potential instabilities in major banks, which could catalyze a significant migration towards decentralized finance solutions such as Bitcoin. Higher rates could strain over-leveraged banks, leading to a fall in their value, while Bitcoin could rise as an alternative financial refuge.

COMBINED TOTAL OF ALL 8 BANKS = 1.5 Trillion

1. JPMorgan Chase & Co. (JPM): $391.88 billion

2. Mastercard Incorporated (MA): $360.32 billion

3. Bank of America Corp. (BAC): $218.28 billion

4. Wells Fargo & Co. (WFC): $151.81 billion

5. Morgan Stanley (MS): $137.6 billion

6. Goldman Sachs Group, Inc. (GS): $106.65 billion

7. Citigroup Inc. (C): $88.48 billion

8. U.S. Bancorp (USB): $46.62 billion


The colossal $1.5 trillion valuation of these traditional banking institutions may give an illusion of robustness, yet this façade might not withstand the test of an evolving financial landscape. These banks, laden with their outdated models and susceptibility to Fed's rate hikes, represent a realm of finance that is increasingly becoming unsustainable. I believe a significant portion of the capital currently tied in these institutions is likely to flow into more resilient, decentralized financial systems such as Bitcoin. By doing so, investors may pivot from a seemingly sinking ship to a dynamic and emergent financial framework, embracing the future of finance with open arms.
Nota
Feedback is appreciated
Nota
A rough estimate for total deposits in U.S. banks in 2023 might be around $17.8 trillion.
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