Recent analysis reveals that over 2,300 US financial institutions could have more liabilities than assets, which could lead to a boost in Bitcoin prices if the government doesn't act carefully. Almost half of America's 4,800 banks are burning through their capital buffers, and there is still more tightening to come from the Fed. The turmoil in the banking industry could drive investors to turn to Bitcoin as a way to protect their assets, potentially driving Bitcoin prices even higher. Financial institutions are pressuring the SEC to crack down on short-selling strategies that profit when bank stocks slide, but any careless moves could create more fissures in the financial system.
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