Bitcoin has made an unexpected rise today. The leading cryptocurrency broke above the $26,000 level, thus reaching a nine-month high.
The rapid rise of BTC also triggered the liquidation of $ 320 million in the last 24 hours. Bitcoin dropped as low as $19,662 just five days ago amid the failure of Silvergate, a crypto-friendly bank. This sudden rise in Bitcoin price was unexpected. So what’s the reason for the rise?
The latest rise followed the release of the February Consumer Price Index (CPI), which showed US inflation fell to 0.4% from 0.5% in January. Accordingly, according to traders’ forecasts, the probability of the US Federal Reserve (Fed) increasing the policy rate by 25 basis points at its monetary policy meeting in March rose above 80 percent, while the probability of keeping it constant decreased further.
Additionally, after the Federal Deposit Insurance Corporation (FDIC) confirmed that deposits were successfully transferred to a new bridge bank, Silicon Valley Bank (SVB) said depositors will have full access to their money. We can say that this is a positive development in terms of Bitcoin price.
Also, crypto exchange Binance’s conversion of $1 billion in Binance USD (BUSD) to support the market may have increased the buying pressure.
You can follow the current price action here.