Bitcoin reached a nine-month high on Monday, March 20, as turmoil in the banking sector led some investors to turn to these risky assets, while the cryptocurrency racked up its best week in four years.
He Bitcoin It reached a nine-month high on Monday, March 20, as turmoil in the banking sector led some investors to turn to these risky assets, while the cryptocurrency racked up its best week in four years. The cryptocurrency leader reached $28,567, its highest since mid-June and advanced 3.8% in its last price, amid growing expectations that central banks will slow down the pace of interest rate hikes. .
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For its part, the rest of the market operates with a negative trend with decreases of up to 4% led by Polygon, followed by Ripple (-2.9%) and Dogecoin (-1.1%).
Bitcoin climbed 26% last week, his best weekly gain since April 2019, and has soared nearly 40% in 10 days as turmoil in the banking sector spread across the globe, culminating so far in the takeover of Credit Suisse Group AG by rival UBS Group over the weekend. week. Traditional assets such as bank stocks and bonds plunged on Monday after UBS sealed its takeover of state-backed Credit Suisse, a deal orchestrated in an attempt to restore confidence in a battered industry.
The main central banks, faced with the risk of a rapid loss of confidence in the stability of the financial system, mobilized on Sunday to strengthen the flow of cash around the world. Such a global response has not been seen since the height of the COVID-19 pandemic.
Its stunning rally is the result of the banking crisis as rate markets price in cuts in the second half of 2023.said Tony Sycamore, an analyst at IG Markets, predicting a move towards $32,000 should bitcoin hold above the key support level around $25,000.
Other market players predicted that bitcoin will benefit from efforts by central banks to bolster liquidity in the global financial system. It rose to a record $69,000 in November 2021, after central banks and governments launched unprecedented monetary and fiscal stimulus measures. “Liquidity is building the momentum,” said Markus Thielson of digital asset firm Matrixport in Singapore.
Source: Ambito
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