Bitcoin (BTC) hit new nine-month highs on March 17 as the newest occasions in the rising United States banking disaster boosted crypto markets.
Banking disaster volatility sees $27,000 BTC price
Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD hitting $27,025 on Bitstamp earlier than consolidating.
At the time of writing, the pair circled $26,500 with volatility ongoing after the Wall Street open.
A catalyst for recent upside had come in the type of the Federal Reserve’s stability sheet knowledge in a single day, this displaying virtually $300 billion being injected into the financial system as a part of the banking disaster response.
The occasion successfully undied months of liquidity removing underneath the Fed’s quantitative tightening (QT), and commentators had been fast to name the restarting of the other 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 US 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,” widespread analytics useful resource Stockmoney Lizards summed up a couple of chart displaying a rising resistance pattern line for BTC/USD.
Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, eyed specific levels up and down.
“Chopperino lands on Bitcoin, which means that we’ll probably have some sideways structures,” he informed 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.
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 its potential consequences, Hayes concluded that Bitcoin was a firm haven — in contrast to stocks.
“For me and my portfolio, I’m largely done trading stocks. What’s the point? I generally buy and hold and don’t trade around my positions that frequently. If I believe what I wrote, then I am signing myself up for underperformance,” he revealed.
“If there is a short-term trading opportunity where I think I can earn some quick fiat duckets and then take my profits and buy more Bitcoin, I will do it. Otherwise, I am liquidating most of my stock portfolio and moving it into crypto.”
Hayes added that there was always a chance that he could be wrong about Bitcoin’s “upward trajectory” and that adjustments to his strategy would follow should that be the case.
“The end was always known in advance. YCC is dead, long live BTFP!” he concluded, referring to the Fed’s Bank Term Funding Program (BTFP) being a disguised type of Yield Curve Control (YCC) “repackaged in a new, shiny, extra palatable format.”
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