The crypto market is seeing a major rally today as both bitcoin and altcoins react positively to the Federal Reserve’s $300 billion in quantitative easing (QE).
The crypto market is green today, thanks to the Federal Reserve injecting $300 billion into the economy in response to the banking crisis in the United States.
At the time of writing, bitcoin is trading at $26,911 and ethereum at $1,759.
Bitcoin hasn’t been at this level since June 2022, but how long can the bulls keep the momentum going?
The tension is palpable everywhere as the latest economic data shows that the Fed has gone too far to contain a banking crisis that some say is unlike any other.
According to the warnings, several other banks may fail in the coming weeks and the banking crisis may spread to the whole of Europe. In this situation, it seems that cryptocurrency is now one of the most popular safe havens amid turmoil reminiscent of the 2008 global financial crisis.
The combined collapse of Silicon Valley Bank (SVB) and Signature Bank resulted in the Fed pouring $297 billion into the economy. The FED has not taken a similar step since the COVID-19 crisis in March 2020. At that time, bitcoin reached almost 70,000 dollars, so many people expect the price of the leading cryptocurrency to shoot up.
“By the end of the month, the balance may reach a new peak. Interest rate hikes don’t count. Inflation will be much higher, thanks to the bank bailouts” wrote the On Twitter Peter Schiff.
The performance of the crypto market has already reacted sensitively to central bank liquidity trends – and not only in the USA.
The more liquidity central banks pump into the global economy, the better, he claimed in February Arthur Hayes, former CEO of BitMEX. Meanwhile, in his latest blog post published on March 16, Hayes drew a striking contrast between the March 2020 and this month’s FED bank rescue package.
“During the money printing episode of COVID, bitcoin went from $3,000 to $69,000. What will he do this time?”
Commenting on the latest developments, popular trader Crypto Tony only wrote:
“Good to see some strength in bitcoin this morning”.