24. February 2024

Bitcoin Price Hits $27K in 9-Month High as Fed Injects $300B

• Bitcoin (BTC) hit a nine-month high of $27,025 on March 17th.
• The Federal Reserve’s balance sheet data showed almost $300 billion being injected into the economy as part of the banking crisis response.
• Market commentators believe that the uptrend could continue despite stocks producing sideways action on the day.

Bitcoin Price Hits Nine-Month High

On March 17th, Bitcoin (BTC) hit a new nine-month high of $27,025 on Bitstamp before consolidating at around $26,500 with volatility ongoing after the Wall Street open. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting this new all-time high.

Fed Injects 300 Billion USD to Economy

The Federal Reserve’s balance sheet data overnight showed almost $300 billion being injected into the economy as part of the banking crisis response. This event effectively undid months of liquidity removal under the Fed’s quantitative tightening (QT), and restarted what is known as quantitative easing (QE). Commentators were quick to note this development with trader, analyst and podcast host Scott Melker commenting that “they’ll tell you it’s not QE, but the numbers don’t lie”.

Uptrend Could Continue Despite Stocks Sideways Action

The events prior to Bitcoin’s surge had been strong performance for U.S equities and market commentators believed that this uptrend could continue despite stocks producing sideways action on the day. Popular analytics resource Stockmoney Lizards summarized a chart showing a rising resistance trend line for BTC/USD saying “this resistance line will break sooner or later” whilst Cointelegraph contributor Michaël van de Poppe noted specific levels up and down noting “needs to hold $26K […] if it loses $26K I’m punting around $25K for some longs”.

Arthur Hayes Ditches Stocks For Crypto

In his latest markets blog post, former CEO of derivatives giant BitMEX, Arthur Hayes revealed his plans to ditch stocks in favor of investing in cryptocurrencies such as Bitcoin due to their growth potential over traditional assets like gold and silver which he sees as “old hat” . He commented that he believes that altcoins will be gaining more traction over 2021 due to their low correlation with other asset classes making them attractive investments for diversification purposes.

Conclusion

Overall, Bitcoin surged past its previous nine month high on the back of news about the Federal Reserve injecting almost $300 billion into US economy in order to respond to banking crisis which has reversed months of quantitative tightening (QT). Market commentators are optimistic about further upside potential despite stock producing sideways movements today whilst Arthur Hayes has revealed his plan to ditch stocks in favor of crypto investments due their growth potential over traditional assets like gold and silver which he sees as “old hat”.