Most cryptocurrencies have gained momentum in recent days with Bitcoin price breaking above the $28,000 level for the first time since June 2022. The largest digital currency has gained roughly 25% since March 8, when The first signs of trouble emerged at Silicon Valley Bank (SVB). ), which has since folded and ignited the turmoil among other lenders.
โBitcoin has been seeing a rise 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, taking it to its highest level in about nine months. The global crypto market was valued at US$1.18 trillion during this period. On Monday, the major central banks made coordinated moves, including the Federal Reserve, to improve market liquidity. This could also have contributed to the bullish sentiment in the market," said Edul Patel, co-founder and CEO of Mudrex.
He crypto market experienced a rebound last week. The bombshell, according to experts, was caused by a combination of factors, including a massive short purchase, a billion-dollar purchase by Binance and the Federal Reserve's response to the banking crisis, and news about the ethereum upgrade.
โAccording to Block statistics, almost $300 million in leveraged short BTC positions were liquidated in the last week. This equates to over $300 million in buying pressure for BTC. During a bear market, this is quite substantial because it doesn't take as much money to push 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 rise. Another reason is the official announcement of the Ethereum Shanghai hard fork upgrade date (April 12), which will allow users to withdraw their staked Eth and is expected to stimulate market demand for Ethereum," said VP of Rajagopal Menon, WazirX.
โHowever, caution remains the need of the hour as news from the banking sector may still affect market sentiment. Regulators may continue to make it more 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 meeting on Wednesday," said Parth Chaturvedi, head of crypto ecosystem, CoinSwitch.
(With contributions from agencies)
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