As Bitcoin hits its highest level in nine months, many are wondering just how high the cryptocurrency can go. With a market cap of over $1 trillion and a surge in demand, as investors seek a safe haven amid economic uncertainty, Bitcoin's price has skyrocketed in recent months.
This has left many wondering whether the cryptocurrency is in the midst of a sustained bull run or whether it is due for a correction.
Last week, the abrupt downfall of three banks, namely Silvergate, Silicon Valley Bank (SVB), and Signature Bank, highlighted the fragility of the conventional banking sector. Analysts have identified unfavorable market conditions and inadequate risk management as major contributors to the collapse of SVB and Silvergate.
The downfall of SVB had far-reaching implications for the global banking industry. Credit Suisse, the second-largest Swiss banking institution, was also affected, facing a severe crisis that necessitated a $54 billion rescue package from the Swiss Central Bank.
With the banking crisis unfolding, investors are turning to cryptocurrency as a reliable alternative. As fears of a potential global financial crisis escalate, the value of BTC/USD has continued to rise.
The Federal Reserve's overnight balance sheet data revealed that approximately $300 billion had been injected into the economy to address the financial crisis, sparking a new upward trend.
This action effectively reversed months of liquidity withdrawal under the Federal Reserve's quantitative tightening (QT) policy, and experts are anticipating the reintroduction of quantitative easing (QE).
The recent reversal of the Federal Reserve's quantitative tightening policy, which had been in effect since 2021, has buoyed BTC/USD bulls, who are nowRead more on cryptonews.com