Bank Of America CEO Issues Serious $6 Trillion Crypto Warning As Bitcoin Surges Toward $100,000 Price

Bitcoin rose sharply this week, reaching near $100,000 as market participants speculated on potential regulatory shifts and macroeconomic developments.

According to Bank of America CEO Brian Moynihan, stablecoins could draw up to $6 trillion in deposits away from traditional banks under certain regulatory conditions.

The U.S. Treasury Department's studies estimate this migration could affect 30% to 35% of commercial bank deposits, altering the balance of lending and funding in the U.S. financial system.

Moynihan stated that stablecoins, which often resemble money market funds, could divert funds from bank lending into alternative reserves like U.S. Treasurys.

This shift could force banks to rely on more expensive wholesale funding, reducing their ability to support household and business loans.

The warning highlights the regulatory debate over whether stablecoins should be allowed to offer interest-like yields on user deposits.

How Did Markets React?

The Senate Banking Committee delayed a markup of the proposed crypto market-structure bill hours before it was set to begin.

Coinbase, one of the bill's initial supporters, withdrew its backing, citing concerns over provisions that would restrict stablecoin yields.

Bitcoin dipped slightly after the news, falling below $96,000 on Thursday morning.

Altcoins like Ethereum and XRP also declined by 2–4%, reflecting broader market uncertainty.

The cryptocurrency market saw a bearish bias as long liquidations outpaced short liquidations, signaling a weak short-term outlook.

What Are Analysts Watching Next?

Analysts are tracking institutional demand for Bitcoin, which has shown a strong correlation with price movements.

Recent purchases by major firms like MicroStrategy and inflows into Bitcoin ETFs have fueled the rally.

The decline in the number of Bitcoin holders has also been noted as a positive sign, suggesting reduced selling pressure.

Legislators remain under pressure to finalize a market-structure bill that balances consumer protection with innovation.

Senator Tim Scott stated that all parties remain engaged in negotiations, with the goal of establishing clear regulatory rules.

The crypto industry leaders are calling for continued dialogue with lawmakers to ensure the bill supports long-term growth without stifling innovation.