Bitcoin
BTC
The bitcoin price has approached $28,000 per bitcoin, its highest level since last summer. The bitcoin price rally has also boosted the price of ethereum and other top ten BNB cryptocurrencies
bnb
XRP
Now, after nearly 200 US banks were found to be dealing with pressures similar to the collapsed Silicon Valley Bank (SVB
VB
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US Federal Reserve Chairman Jerome Powell is facing calls to suspend his interest rate program. ... [+]
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"As if they didn't have enough to contend with in fighting inflation on the one hand and fending off recession on the other, central banks must now deal with the failure of SVB and any broader implications it has for the banking system, given that higher interest rates have played some role in putting pressure on that bank's customers and ultimately on the bank itself," Russ Mold, chief investment officer at brokerage AJ Bell said in emailed comments. electronic.
"We will find out how disturbed the officials are, if they are really disturbed."
Traders now expect the Fed to raise interest rates by just a quarter of a percentage point next week before quickly reversing course and cutting rates later this year.
The shocking collapse of SVB last week, as well as the closure of crypto-friendly Signaure Bank, raised fears that other banks could suffer a similar fate. economists wrote in a study this week that 186 banks across the country could be prone to similar risks as SVB. Troubled First Republic Bank was given a lifeline by nearly a dozen of its biggest rivals to prevent its implosion.
The bitcoin price has fallen sharply over the last year as the Federal Reserve raised interest rates at a record pace to reduce skyrocketing inflation, wiping out around $2 trillion from the combined price of ethereum, BNB, XRP, cardano, dogecoin, polygon, sunny.
The Fed's response to the SVB-led banking crisis has caused expectations to rise, the Fed is about to reverse course and has already restarted QE:something some fear could trigger hyperinflation of the US dollar and ultimately the collapse of the entire financial system.
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Bitcoin's year-to-date price rally still has a long way to go before it wipes out last year ... [+]
Forbes Digital Assets
"Worries stemming from a series of US bank closures have eased thanks to some help from the Fed and now, with its balance sheet expanding by about $300bn in a week, the market is welcoming the end." Fed Quantitative Tightening," Yuya Hasegawa, Tokyo-based crypto market analyst at Bitbank, wrote in an emailed note, noting that bitcoin's latest rally could signal the start of a new bull market.
"Although Treasury yields have rallied on declining concerts for the economy, leaving some room for the Fed to continue raising rates. However, the reversal in stock market sentiment has improved risk appetite and could drive the bitcoin price higher in the near term."
