Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Topic started by: Coinpedia Fintech News on March 17, 2023, 11:08:10 AM
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Bitcoin bulls pushed the price beyond $25k during early Asian market hours after rejecting $26.5k earlier this week. According to recent crypto market data, the Bitcoin price is hovering around $25.9k, marking a 6.5% increase in the past 25 hours. As the US government prints more money to save the struggling banking industry, investors are expected to seek refuge in Bitcoin to escape riskier assets.
Moreover, the Federal Reserve added $300 billion to its balance sheet over the past week, marking the highest amount in a short period since Black Thursday in 2020. According to JPMorgan Chase, the Fed may inject up to $2 trillion into the banking system following the collapse of three lenders over the past week.
The overall inflation is expected to rise, despite the Fed’s initiative to bring it down to 2%. With Bitcoin’s inflation rate at 1.71% per annum, more investors are likely to ditch fiat currencies in favor of the digital asset.
A closer look at the Bitcoin market reveals that its price is retesting the macro downtrend resistance level that began in late 2021. The Bitcoin market is showing an increased rate of decoupling from equities correlation, with the Nasdaq relation at its lowest. With the Fed’s action to print more money to save the banking sector, the correlation is expected to widen further.
Moreover, on-chain data reveals that the Bitcoin market is growing rapidly. The total amount of Bitcoin addresses has increased by 1.71 million, representing a 3.95% increase over the last two months. This suggests that more people are becoming interested in Bitcoin as a viable investment option.
Furthermore, the largest Bitcoin on-chain transactions of $1 billion have recently taken place from a single whale. This indicates that there are still high-net-worth individuals interested in Bitcoin, despite the recent market pullback.
In conclusion, the recent market developments suggest that Bitcoin is poised for a surge in the coming months. With more investors looking to escape inflation and the government printing more money, the demand for Bitcoin is expected to increase. However, investors should remain cautious and diversify their investments to mitigate risks.
Do you think Bitcoin will continue its rally in the near future?
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Ever since the banking crisis worsened last week and expanded to Europe during this one, BTC has been on a roll. This resulted in adding over $6K of value from last Friday, when it struggled at $20K, until Tuesday when it spiked above $26K.
Despite the retracements in the next few days, BTC resumed its run late last night and today. After reclaiming $26K earlier today, the coin kept climbing and came inches away from tapping $27K for the first time since June 2022.