Why Bitcoin, other cryptocurrency prices have increased
Most cryptocurrencies have gained momentum in recent days with the Bitcoin price hovering above the $28,000 level for the first time since June 2022. The largest digital coin is up about 25% since March 8, when signs first emerged of problems surrounding Silicon Valley Bank (SVB) ), which has since folded and ignited unrest among other lenders.
Most cryptocurrencies have gained momentum in recent days with the Bitcoin price hovering above the $28,000 level for the first time since June 2022. The largest digital coin is up about 25% since March 8, when signs first emerged of problems surrounding Silicon Valley Bank (SVB) ), which has since folded and ignited unrest among other lenders.
“Bitcoin has seen a surge in value in recent days due to instability in the banking sector, higher-than-expected inflation data and renewed confidence in a dovish Federal Reserve, bringing it to its highest level in about nine months. The global crypto market was valued at USD 1.18 trillion during this period. On Monday, major central banks made coordinated moves, including the Federal Reserve to improve market liquidity. This may have also contributed to the bullish sentiment in the market,” said Edul Patel, co-founder and CEO of Mudrex.
“Bitcoin has seen a surge in value in recent days due to instability in the banking sector, higher-than-expected inflation data and renewed confidence in a dovish Federal Reserve, bringing it to its highest level in about nine months. The global crypto market was valued at USD 1.18 trillion during this period. On Monday, major central banks made coordinated moves, including the Federal Reserve to improve market liquidity. This may have also contributed to the bullish sentiment in the market,” said Edul Patel, co-founder and CEO of Mudrex.
The crypto market experienced an upswing last week. The pump, according to experts, was caused by a combination of factors, including a massive short squeeze, a billion-dollar purchase by Binance, and the Fed’s response to the banking crisis, and news of Ethereum’s update.
The crypto market experienced an upswing last week. The pump, according to experts, was caused by a combination of factors, including a massive short squeeze, a billion-dollar purchase by Binance, and the Fed’s response to the banking crisis, and news of Ethereum’s update.
“According to block statistics, almost $300 million in leveraged BTC short positions were liquidated in the last week. This adds up to more than $300 million in buying pressure for BTC. During a bear market, this is quite significant because it doesn’t take nearly as much money to run prices up or down. Binance’s conversion of $1 billion in BUSD to BTC, ETH, BNB and other unnamed cryptocurrencies likely contributed to the recent surge. Another reason is the official announcement of the Ethereum Shanghai hard fork update date (April 12). , which will allow users to withdraw their stake Eth and is expected to stimulate demand in the Ethereum market,” said Rajagopal Menon Vice President WazirX.
“According to block statistics, almost $300 million in leveraged BTC short positions were liquidated in the last week. This adds up to more than $300 million in buying pressure for BTC. During a bear market, this is quite significant because it doesn’t take nearly as much money to run prices up or down. Binance’s conversion of $1 billion in BUSD to BTC, ETH, BNB and other unnamed cryptocurrencies likely contributed to the recent surge. Another reason is the official announcement of the Ethereum Shanghai hard fork update date (April 12). , which will allow users to withdraw their stake Eth and is expected to stimulate demand in the Ethereum market,” said Rajagopal Menon Vice President WazirX.
“However, caution is the need of the hour as banking sector news may still affect market sentiment. Regulators may continue to make it difficult for banks to process crypto-related transactions, as has been the case with Signature Bank. Another thing to watch out for will be the Fed’s meeting on on Wednesday,” said Parth Chaturvedi, Crypto Ecosystem Lead, CoinSwitch.
“However, caution is the need of the hour as banking sector news may still affect market sentiment. Regulators may continue to make it difficult for banks to process crypto-related transactions, as has been the case with Signature Bank. Another thing to watch out for will be the Fed’s meeting on on Wednesday,” said Parth Chaturvedi, Crypto Ecosystem Lead, CoinSwitch.
(With input from agencies)
(With input from agencies)
