Bitcoin (BTC) Price Climbs Past $28,000 For the First Time In Nine Months, Bull Party Started?
The world’s largest cryptocurrency Bitcoin (BTC) seems to be on a very strong footing and surged past $28,000 on Sunday, March 19, for the first time since June 2022. However, there’s been a partial pullback since yesterday’s top and BTC is currently trading at $27,502 with a market cap of $531 billion.
Over the last week alone, BTC has added more than $100 billion to investors’ wealth as the banking crisis unfolds and with a hotter than expected inflation. As per our expectations, the FOMC meeting ahead of this week on March 21 could rather catapult BTC to more than $30,000.
The Bitcoin (BTC) price has already surged by more than 70% since the beginning of the year. Altcoins too have followed Bitcoin with Ethereum (ETH) shooting past the $1,800 level on Sunday.
There’s a high level of uncertainty currently in the global markets, especially in the US and Europe. Small banks in the US and even giants like Credit Suisse are not at the mercy of the central bank as depositors line up for heavy withdrawals fearing a bank-run kind of situation.
If the Fed does not contain the regional bank collapse, there will be another great depression.
Small/medium banks account for 50% of US commercial and industrial lending, 60% of residential real estate lending, 80% of commercial real estate lending, and 45% of consumer lending pic.twitter.com/wzTMHxSnXI
— zerohedge (@zerohedge) March 18, 2023
Despite this looming crisis, Bitcoin has emerged as investors’ hope with the BTC price gaining more than 25% over the last week. Last week, the Fed announced a $300 billion capital infusion on the market reversing their six months of efforts of monetary tightening. If the Fed pivots this week back to QE, there would be a new rush of liquidity, however, it would mean even higher inflation going ahead.
Veteran investor Balaji Srinivasan is betting a million dollars that the Fed would eventually give up and that the US would be in a situation of hyperinflation. In his wild prediction, Balaji is expecting the Bitcoin price to hit $1 million in the next 90 days. Some analysts have argued that this is not very possible.
Will Bitcoin Be The Saviour In This Banking Crisis?
By design, Bitcoin seeks to protect investors’ wealth from the infinite money printing by the central banks and prevent the erosion of wealth. Balaji believes that Bitcoin will drive the new financial world order emerging as a strong bet against the central bank’s actions.
Bitcoin is not for making money.
Bitcoin is for saving money.
It is not an inflation hedge.
It is a hyperinflation hedge.
The world once ran on gold.
It will soon run once again on digital gold. https://t.co/vDpQM2bA0V
— Balaji (@balajis) March 19, 2023
As per historical trends, Bitcoin’s last week performance set the tone for the beginning of the new bull run.
The price performance of #Bitcoin has been historically strong, returning 35.8% over the last 7-days.
Similar weekly $BTC performance since 2015 have all been related to bull market conditions, however only Nov 2015 occurred early in the up-trend.https://t.co/WnjaRlRwaH pic.twitter.com/ftZIh7mHlF
— glassnode (@glassnode) March 19, 2023
CryptoQuant analyst maartun explains: “Bitcoin Surpasses Multiple Price Bands for Support Level Ahead of Crucial Weekly Close. An extremely important weekly close is approaching. It is the first time in over 250 days that the price of Bitcoin is going to close above multiple important price bands”.