Was this the Bitcoin floor signal? According to the analyst, the FED pivot is not far away
Was this the Bitcoin floor signal? According to the analyst, the FED pivot is not far away
The markets begin to praise an upcoming FED pivot, since the instability of the banks forces the central banks to protect the financial system. The analysis of the cryptoquant analyst Cristian Palusi suggests that the liquidity crises from which commercial banks now suffer could be a "long-awaited purchase signal" for Bitcoin.
banks in the minus, Bitcoin in plus
in a post Palusci, found that the implicit key interest rates of the federal funds for the time when they believe that the central bank believe that Interest will have reduced interest again for the first time, from Q1 2024 to June 2023.
Meanwhile, gold and Bitcoin are on the rise: The precious metal rose to almost $ 2000 on Friday, while it is often considered digital successor 9-month high of $ 27,000 .
"One of the elements that represented a clear purchase signal, appeared immediately after the bankruptcy and the associated rescue operation of the Silicon Valley Bank: the coinbase premium," wrote Palusci. Coinbase (coin) has increased by over 37 % in the last 5 days and is known for the fact that it correlates closely with the crypto-asset market, for which it enables trade.
"First the spread could have been duplicated after the U.S. Departation, in view of the recent price movements, it is clear that the premium shows instead the enormous purchase pressure on the stock exchange, since American investors have considered the $ 20,000 area than a very interesting level," he continued.
The pivot point comes
The Silicon Valley Bank (SVB) housed the USDC reserves from Circle worth 3.3 billion US dollars with which Coinbase is largely connected. When the bank was closed by the supervisory authorities on March 10, USDC briefly lost its bond with the dollar and went back next to coin and Bitcoin.
Now all three have recovered in a spectacular way after the US Federal Reserve promised to save the SVB and signature inserts. The central bank has also played a special credit program for federal insured institutions, which has already been used by banks lend $ 300 billion within one week.
on Thursday, Bitmex co-founder Arthur Hayes called A detour of the quantitative relaxation, which would ultimately pump Bitcoin-a feeling that Palusci agreed: The leverage within the crypto sphere seems to have also decreased compared to its level in October 2022, which "could represent further elements to heat up the rally if the central banks formalize the pivot". .
explained that the bank term funding program (btfp) of the Fed 2 trillions US dollar will pump in the financial system, ”he noticed,“ and with a similar acronym, the buy-the-dip invitation seems to be quite explicit. ”