Bitcoin near nine-month high

20 Mar 2023

Bitcoin was close to nine-month highs on Monday and enjoyed its best week in four years.

After reaching its highest since 12th June on Sunday at $28,474, the world’s largest cryptocurrency by market cap declined 1.8% in Asia trading on Monday to $27,549. 

Ether – the world’s second-largest cryptocurrency, reached a seven-month high of $1,846.50 on Sunday and, at the time of writing, stood at $1,768. 

The BTC price increased 26% last week and, over the previous ten days, has risen more than 35% as turmoil within the banking sector was felt around the world. 

This started with Silicon Valley Bank’s collapse, and most recently, UBS agreed to buy Credit Suisse for 3 billion Swiss Francs ($3.23 billion) and assume $5.4 billion in losses, Reuters news agency reports.

“The momentum is all driven by liquidity, as Bitcoin is an alternative liquidity vehicle,” according to Markus Thielson, Matrixport’s head of research and strategy. 

Thielson forecasts Bitcoin may reach $45,000 by the end of the year, with central banks’ liquidity making its way into crypto assets, as happened in 2021 when the largest cryptocurrency hit all-time highs. 

On Sunday, the US Federal Reserve announced that, along with other central banks, it would deepen liquidity by boosting the Dollar supply operations’ frequency into financial markets. 

In addition, so far this year, Bitcoin’s market capitalisation has added $194 billion, representing a year-to-date gain of 66%, Cointelegraph reports, surpassing Wall Street banks stocks. Bitcoin has risen around 65% this year, compared to the 2.5% gain in the S&P 500 and Nasdaq’s 15% fall in 2023.

Moreover, according to former Coinbase chief technology officer Balaji Srinivasan, a global banking crisis could see Bitcoin hit $1 million in under 90 days. According to Srinivasan’s prediction, a US banking crisis could spark a hyperinflation scenario leading to the forecast Bitcoin price.

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