Banks Tiptoe Into Crypto as Market Braces for Bitcoin Surge

Bitcoin may surge to $120K as institutions hold firm, while retail panic during dips reveals growing sentiment-driven volatility.

Major US banks explore cautious crypto entry through pilots and partnerships, eyeing growth amid evolving regulatory support.

Trump’s pro-crypto stance and relaxed SEC policies encourage Wall Street giants like Schwab and BoA to pursue digital asset strategies.

Market analyst Doctor Profit predicts a sharp Bitcoin rally, eyeing levels of $113K to $120K. He believes market makers are orchestrating temporary downturns to flush out weak hands. Recently, Bitcoin dipped nearly 6% from its all-time high, triggering panic among retail traders. On-chain data reveals that many late buyers entered above $72K, now facing emotional pressure. Meanwhile, whales and institutions remain calm, setting the stage for the next leg up.

Retail Panic vs Smart Money Strategy

Retail traders often react emotionally to market dips. Hence, short-term price drops cause massive overreactions, despite strong long-term fundamentals. Doctor Profit mocked this behavior, calling it a classic shakeout before a major move. Besides, algorithmic trading and fragmented liquidity amplify such volatility.

Rumors or misleading headlines can spark flash crashes. A false exchange hack can trigger automated sell-offs, leading to liquidations and price spirals. Consequently, this creates a feedback loop where panic turns into real losses. Additionally, negative sentiment impacts developers and venture capitalists. Fear drives funding pullbacks, slowing down innovation and validating the initial panic. Moreover, media outlets worsen the cycle by amplifying dramatic downturns in views.

Wall Street Inches Closer to Crypto

While volatility shakes retail, big banks are preparing to enter crypto markets cautiously. Four major U.S. bank executives disclosed internal discussions about pilot programs and small-scale crypto trading projects. However, institutions remain hesitant due to uncertain regulations.

Jamie Dimon of JPMorgan reiterated his anti-crypto stance. He ruled out custody services and warned of fraud, misuse, and leverage in crypto markets. Still, JPMorgan allows clients to buy Bitcoin, likening it to smoking—discouraged but permitted.

Additionally, Trump has championed pro-crypto policies, calling himself the first “crypto president.” He plans to boost adoption and build a strategic Bitcoin reserve. These regulatory shifts have emboldened firms like Charles Schwab and Bank of America to explore stablecoins and crypto trading. The U.S. Office of the Comptroller of the Currency has already greenlit crypto custody and stablecoin activities. Furthermore, the SEC scrapped accounting rules that previously made crypto costly for banks.

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