Monday, 15 April 2024

Crypto News

Bitcoin price hits $27K in new 9-month high as Fed injects $300B

Bitcoin price hits $27K in new 9-month high as Fed injects $300B

Bitcoin (BTC) hit new nine-month highs on March 17 as the latest events in the growing United States banking crisis boosted crypto markets.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Banking crisis volatility sees $27,000 BTC price

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $27,025 on Bitstamp before consolidating.

At the time of writing, the pair circled $26,500 with volatility ongoing after the Wall Street open.

A catalyst for fresh upside had come in the form of the Federal Reserve’s balance sheet data overnight, this showing almost $300 billion being injected into the economy as part of the banking crisis response.

The event effectively undid months of liquidity removal under the Fed’s quantitative tightening (QT), and commentators were quick to call the restarting of the opposite phenomenon — quantitative easing (QE).

“They’ll tell you it’s not QE, but the numbers don’t lie. Roughly half of the reduction from a year of quantitative tightening has been erased in a week,” trader, analyst and podcast host Scott Melker, known as “The Wolf of All Streets,” commented.

Bitcoin thus followed a strong performance for U.S. equities the day prior.

For market commentators, belief was there that the uptrend could continue despite stocks producing sideways action on the day.

“Bitcoin is trying to fly – this resistance line will break sooner or later,” popular analytics resource Stockmoney Lizards summarized about a chart showing a rising resistance trend line for BTC/USD.

BTC/USD annotated chart. Source: Stockmoney Lizards/ Twitter

Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, eyed specific levels up and down.

“Chopperino land on Bitcoin, which means that we’ll probably have some sideways structures,” he told followers on the day.

“Needs to hold $26K. If that holds, $28-30K is next. If it loses $26K, I’m punting around $25K for some longs. Relatively easy to understand.”

 BTC/USD annotated chart. Source: Michaël van de Poppe/ Twitter

Hayes: I’m ditching stocks for crypto

In his latest markets blog post meanwhile, Arthur Hayes, former CEO of derivatives giant BitMEX, revealed a pivot of his own.

Related: Why is the crypto market up today?

In an extensive dissection of current Fed behavior and their potential consequences, Hayes concluded that Bitcoin was a firm haven — in contrast to stocks.

“For me and my portfolio, I’m largely done trading stonks….

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