The recent rise in bitcoin price has piqued the interest of investors who are closely watching the cryptocurrency market for signs of an ongoing uptrend. Several factors are contributing to Bitcoin’s current price action, including increased institutional acceptance, regulatory clarity, and increasing global economic growth.
As of this writing, Bitcoin is priced at $27,590 and has a trading volume of $43.9 billion over the last 24 hours. The cryptocurrency currently ranks first on CoinMarketCap and has a market cap of $532 billion.
There are chances for Bitcoin to meet resistance at $27,950, which could limit further price growth. However, a break of this resistance could create increased buying opportunities that could potentially send the price higher to $28,500.
On the other hand, the next level of support for Bitcoin is at $26,500. If the price falls below this level, it could increase selling pressure and send the price down to $25,750. Therefore, it might be wise for investors to consider investing if bitcoin price remains stable above $27,000.
Banks lose and cryptos win
The global financial markets continue to be characterized by turmoil, especially since Credit Suisse had to disclose serious shortcomings in its financial situation. In addition, the Saudi National Bank has refused to provide additional financing to the ailing Swiss bank to help it stabilize. To ease growing concerns over Credit Suisse’s liquidity problems, the Swiss National Bank stepped in late Wednesday, allowing the bank to draw down up to $54 billion in loans.
Amidst this ongoing banking crisis, investors marvel at the robust performance of the cryptocurrency market. The stability of this market, coupled with the low correlation observed between bitcoin and stocks over the past several months, has led to bitcoin being increasingly viewed as an attractive alternative investment vehicle. Over the week marked by a notable surge in cryptocurrency prices, BTC/USD prices reacted to the identification of vulnerabilities in US and European financial structures.
Uncertainty surrounding US Federal Reserve rate hikes is causing volatility in the Bitcoin market. Investors are concerned that the Federal Reserve may scale back its planned 50 basis point rate hike to bolster its strategies against persistent inflation in the United States. US data released on Wednesday showed a fall in producer-level inflation and a slump in retail sales, raising expectations that the Federal Reserve could hike rates more moderately during its meeting.
In addition, rising fears of a global financial crisis have influenced discussions about declining inflation, reducing the likelihood of the Fed raising interest rates by 50 basis points. Reuters also reported that the Federal Open Market Committee (FOMC) may prefer interest rates to be raised by as little as 25 basis points during its March 22 meeting.
In early March, US consumer sentiment took a hit as the University of Michigan consumer confidence index fell to 63.4 from 67 in February, worse than the expected market forecast of 67. As a result, the dollar index fell to 104.06 and could due the increasing uncertainty about the interest rate decision by the Federal Reserve. The weakening of the US dollar has proved favorable for the BTC/USD pair.
BitMEX CEO Arthur Hayes believes the upcoming bull market is realistic
Arthur Hayes, the co-founder and CEO of BitMEX, anticipates a massive Bitcoin rally and a significant change in the modus operandi of central banks around the world. This prediction follows news that the People’s Bank of China has reduced its reserve requirements by 0.25%. Hayes sees a price target of one million US dollars for Bitcoin in this development.
Hayes believes that China’s decision confirms his assumption that government intervention and financial injections will increase in the future. The reserve requirement is the percentage of deposits that commercial banks are required to hold as reserves. By lowering the requirement, commercial banks can lend and invest more money.
Hayes says monetary easing is certain to come. Hayes suspects that considering the scale of the measure, the introduction of the BTFP will lead to a bigger Bitcoin rally than the pandemic-related quantitative easing measures.
Bitcoin price surged from $3,000 to $69,000 during the COVID-19 pandemic. Hayes asks what will happen in this context at the next rally. Regarding the public’s reaction to the expected Bitcoin and crypto rally, Hayes believes that this rally will be heavily criticized. People might wonder why the crypto market can surge despite the many negative events in 2022 and whether people haven’t realized that bitcoin and its surroundings have fallen into disrepute. These concerns could be fueled by fears of the possible collapse of large banks and the endangerment of the US banking system due to Bitcoin.
This project will perform much better than Bitcoin in the upcoming bull market:
Love Hate Inu (LHINU) is a novel meme token built on revolutionary blockchain technology. Despite the recent shutdown of crypto-friendly banks in the US, like Signature Bank, LHINU is expected to perform very well and offer attractive yields to investors. LHINU’s unique STAKE-TO-VOTE system allows users to confirm and anonymously cast their votes in polls by using LHINU token use to participate in surveys and receive tokens as rewards.
The main goal of the project is to keep the majority of the tokens in the hands of the community. Therefore, 90% of the total LHINU supply will be in the pre sales offered. The remaining 10% is for liquidity, listing fees, and community rewards. By participating in the LHINU community, investors can rest assured that their opinions are valued and rewarded.
Even in the face of an impending financial crisis, investors need not worry about the success of LHINU close. The project has already gained momentum, and the pre-sale of LHINU tokens allows investors to get early into an innovative and promising project. Due to its STAKE-TO-VOTE system and the high demand in the meme token market, LHINU has the potential to offer investors high returns. Therefore, investors should get into the project now before the price for LHINU token increases and the opportunity is missed.
