Bitcoin (BTC) broke the resistance level that had been strong for almost a year on March 20, hitting a nine-month high of $28,400.

Recent Price Rally Came After Federal Reserve Board announced It said it is partnering with major central banks around the world to support dollar cash flow “in order to ease tensions in global funding markets.”

central banks unite

The Federal Reserve said on March 19 that it would act in concert with other central banks offering US dollar operations: the European Central Bank, the Bank of Canada, the Bank of England, the Bank of Japan and the Swiss National Bank. . Ensure that the credit supply to households and businesses is not affected.

Starting March 20, the central bank will increase the frequency of seven-day US dollar maturity operations from weekly to daily.

The swap line will run until at least the end of April, according to the press release.

The market expects regulators to also slow down rate hikes amid the banking crisis that has hit multiple US banks and Credit Suisse.

The last time a central bank introduced such a level of liquidity to its funding markets was at the start of the Covid-19 lockdowns, with analysts saying the surplus money injected into the economy would flow into assets. Therefore, we expect Bitcoin to continue to surge.

New interest in BTC

BTC is up more than 28% over the past week and is trading at $28,290 at the time of writing. Problems with the traditional banking system seem to have shaken confidence in traditional assets, and more money is starting to flow into Bitcoin.

According to Coinglass dataopen interest in bitcoin futures reached $12 billion over the weekend, signaling renewed interest in the flagship cryptocurrency.

The $12 billion is a year high and could portend a new bull market driven by additional liquidity that central banks will introduce into the market in the coming weeks.

Meanwhile, most altcoins have experienced similar gains, with most of the top 10 cryptocurrencies by market capitalization registering gains of between 5% and 15% over the past week.

BTC has made the most of major cryptocurrencies over the past seven days, demonstrating its resilience to financial market turmoil and volatility. Recent weeks have proven that Bitcoin is steadily becoming a “safe haven” asset.

By Jules

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