3 reasons why Bitcoin exploded for a 9-month high this week

3 reasons why Bitcoin exploded for a 9-month high this week

Bitcoin rose to a high of $ 26,514 on Tuesday, a plus of 30 % since the crash under $ 20,000 on Friday.

What made the king of crypto to recover in such a spectacular way? Here are three possible reasons:

The rescue action of the Silicon Valley Bank

A large part of Bitcoin's price problems last week was due to the uncertainty that the largest bank partners in the crypto industry went bankrupt. These partners include Silbertor Signature Bank and Silicon Valley Bank-the latter was confiscated by the FDIC on Thursday.

The event-both Bitcoin cracked and destabilized USDC -was taught by the Federal Reserve on Sunday. save. The announcement was a great relief for a number of crypto companies exposure to the bank, including circle, blockfi, ripplepantera capital and yuga labs.

In particular, the Fed claimed that rescue packages were free of charge for the taxpayer-a sign for many that the Federal Reserve plans to inject more money into the economy. In general, more money means higher prices for risk systems - including stocks and crypto.

Rich Father, poor father Author Robert Kiyosaki repeated this thesis after Bitcoin began to rise again on Sunday:

"Bail-Outs begin. More counterfeit money to penetrate the sick economy. Still recommend the same answer. Buy more g, s, bc.

inflation goes back

Although Bitcoin was already on the rise after saving SVB, the Bureau of Labor Statistics Consumer Price Index (CPI) could help bring it in full swing.

The report showed that inflation had cooled down to 6 % in February-after 6.4 % in January. Meanwhile, the core CPI (which takes into account the volatile food and energy prices sectors) remained unchanged at 5.5 %.

The Federal Reserve attracted interest rates in the past year to combat the increasing inflation, which devastated both the crypto and the stock market alike. Signs that inflation decreases back could mean that the Federal Reserve is willing to set the interest rate increases, which is optimistic for investors.

The fedwatch tool from CME shows after the FOMC session this month an interest rate increase.

Binance rises in Bitcoin for a long time

also binance, the world's largest crypto exchange, could stand behind the pump.

In order to isolate itself from the sufferings of the stablecoins and the banking system, CEO Changpeng Zhao announced Industry Recovery Fund in Bitcoin, Ethereum and Busd would convert.

whales of this size can move the market alone. When the Luna Foundation Guard was shopping Bitcoin worth several billion dollars last spring, the organization helped to return almost over $ 50,000 despite the ongoing bear market pressure.

according to his statement, Glassnode data showed tens of thousands of Bitcoin are paid in by Binance. Analyst James V. Straten said that this "suggests the reasons for this [Bitcoin] volatility in addition to the macro."

The price of Bitcoin has since cooled down to $ 24 at the time of writing.

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