Bitcoin (BTC) hit new nine-month highs on March 17 as recent events in the growing banking crisis in the US have lifted crypto markets. According to analysts, Bitcoin bulls are trying to push higher as Fed liquidity ramps up the quantitative tightening that has been in place since 2021.
The banking crisis took the BTC price to $27,000
Data from TradingView showed that Bitcoin (BTC) reached $27,025 on Bitstamp before consolidating. At the time of writing, BTC surrounded $26,800 with continued volatility after the Wall Street opening. A catalyst came for a new surge in the form of the Federal Reserve’s overnight balance sheet data. This shows that about $300 billion was injected into the economy as part of the response to the banking crisis.
The event effectively nullified months of liquidity cuts under the Fed’s quantitative tightening (QT). Commentators said that immediately the opposite phenomenon was restarted, namely quantitative relaxation (QE). Trader, analyst, and podcast host known as ‘The Wolf of All Streets’ Scott Melker said, “They’ll say there’s no QE, but the numbers don’t lie. “Roughly half of the reduction from one-year quantitative tightening (QT) was erased within a week.”
“Bitcoin is trying to fly!”
Thus, Bitcoin had a strong performance for US stocks the previous day. For market commentators, there was a belief that the uptrend could continue even though the stocks produced sideways movements throughout the day. Popular analytics resource Stockmoney Lizards wrote about a chart showing an ascending resistance trend line for BTC, “Bitcoin is trying to fly. This resistance line will be broken sooner or later,” he summarized.
Michaël van de Poppe, founder and CEO of trading company Eight, has looked at specific levels up and down. The analyst told his followers, “Chopperino is landing on Bitcoin, which means we will likely have some lateral structures. It should hold $26,000. If that’s the case, $28-30k is next. If he loses $26,000, I’ve been playing around $25,000 for a few long times. It’s relatively easy to understand,” he said.
Bitcoin poised to explode over 270%
Messari founder and CEO Ryan Selkis says Bitcoin (BTC) is poised to make a massive rally as US banks fall like dominoes. Selkis thinks Bitcoin will likely reach six figures in the next 12 months.
Ryan Selkis predicts that there will be additional bank failures and the Federal Reserve will not only stop raising interest rates to reduce inflation, but will also begin to lower them. He also says that more investors will see Bitcoin as an attractive ‘foreign currency’ asset and institutions will adopt king crypto faster than any potential US move to restrict or ban it. The CEO cites five main reasons why Bitcoin’s estimated price is set at $100,000, a more than 270% increase from its current value of $26,606:
- More bank failures in the next few weeks.
- Fed cuts / QE (Quantitative easing) is back!
- BTC climbs, maintains moderate inflation.
- ‘Foreign Currency’ / ‘Hard Money’ – $100,000 / BTC.
- Corporations buy faster than the Feds can close.
According to Arthur Hayes, BTC can reach $ 1 million
Former BitMEX CEO Arthur Hayes reiterated his prediction that Bitcoin will reach a price of $1 million, citing that China’s recent lowering of the required reserve ratio (RRR) is a factor that will boost the cryptocurrency’s value. In a tweet, Hayes added a screenshot of a Bloomberg article discussing China’s decision to cut reserve ratios by 0.25 percent for nearly all banks, a move aimed at providing liquidity in the banking system and sustaining rapid lending growth.
cryptocoin.comAs you follow, Hayes previously predicted that Bitcoin would reach $1 million by 2030, and he attributed this milestone to the ‘HODL culture’ where users condemnedly refuse to sell their assets in anticipation of a significant price increase.
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