Crypto Comeback: Examining the surge in crypto prices

economictimes.indiatimes.com:

cryptocurrency market experienced a significant surge, with Bitcoin leading the charge and gaining over 30%. The rally can be attributed to several factors, including a massive short squeeze, a billion-dollar buy by Binance, the Fed's response to the banking crisis, and news on Ethereum's upcoming update. Over $300 million in leveraged BTC short positions were liquidated, resulting in over $300 million in buying pressure for BTC. This is a substantial amount during a bear market when it doesn't take nearly as much money to move prices up or down. The rally was also helped by the fact that Binance turned $1 billion worth of BUSD into BTC, ETH, BNB, and other unnamed cryptocurrencies. Another factor is the official announcement of the Ethereum Shanghai hard fork update date (April 12), which will allow users to withdraw their staked ETH and is expected to stimulate Ethereum market demand. Institutional investors are expected to find ETH more appealing because they love yield, and the ability to earn a yield on what is effectively the next network for payments is an attractive prospect. It is believed that many institutions were hesitant to stake ETH because it wasn't possible to unstake, but this will change with Shanghai, and millions, if not billions, of dollars could flow into ETH in the days and weeks that follow. BTC is also considered sensitive to changes in money supply, and as such, many have argued that the increase in the size of the Fed's balance sheet is the key driver of the rally.

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