The bitcoin (BTC) rate has risen significantly against the backdrop of news about the launch of a state program in the United States, the purpose of which is to provide local banks with access to liquidity to cover deposit obligations, Capital Lab partner Evgeny Shatov explained to bitcoinlinux on March 14.
As follows from published data on website Coindesk, March 14 at 15:57 Moscow time, the BTC rate reached almost $26 thousand, although on the morning of March 13 it was at the level of $22 thousand.
“The Fed (Federal Reserve System. — Ed.) allocated $ 25 billion to help supervised organizations. The decision followed a series of bankruptcies in the banking sector, which affected crypto-friendly banks Signature Bank and Silicon Valley Bank,” the expert said.
According to him, members of the crypto community perceived this news as the launch of a “printing press”, which may mark the return of American regulators to the policy of quantitative easing, which, in turn, implies an injection of liquidity into the economy, and such a decision by the Fed will have a positive impact on the digital asset market. .
“The logic of the crypto community participants looks something like this: part of the money from the new stream will go to the crypto industry, which will support the growth of the cryptocurrency rate. The fact is that historically bitcoin, followed by altcoins, demonstrate positive dynamics during the launch of the “printing press” in the United States. Members of the crypto community emphasize that bitcoin was the answer to the problems of the traditional financial market, so the difficulties faced by banks will contribute to the development of the digital asset market,” said Shatov.
In addition, the expert noted that the closure of cryptocurrency-friendly lending institutions could threaten stablecoins (digital assets whose rate is pegged to the underlying asset: the dollar, a gram of gold, etc.).
“The issuers of such tokens, as a rule, keep the assets backing the cryptocurrency in banks. For example, one of the clients of the closed Signature Bank was Circle, the issuer of the second-largest stablecoin in terms of capitalization, USD Coin,” the expert explained.
Shatov said that in the short term, possibly before the end of March, many members of the cryptocurrency community expect that Bitcoin could reach $30,000. At the same time, according to him, many analysts are skeptical about the BTC rate and recall its close correlation with the stock market. market.
“The Fed made it clear to the market that the regulator plans to tighten monetary policy, so if there is no policy reversal, the regulator’s actions could put pressure on the stock market, followed by crypto. The bitcoin exchange rate largely depends on the level of liquidity in the system, which is determined by the policy of the Fed, as well as on the actions of major market players. Bitcoin tends to be positively correlated with stock market dynamics, however, this statistical relationship is strongest during periods of turbulence in global financial markets and almost absent during periods of price stability,” Shatov concluded.
At the beginning of 2023, the Bitcoin exchange rate was at the level of $16.5 thousand. On February 16, BTC rose above $25 thousand, which was the maximum since August 2022. On February 27, according to the CoinDesk cryptocurrency exchange, it is at the level of $23.7 thousand.
The founder of Anderida Financial Group, Alexey Tarapovsky, expressed the opinion on January 14 that the increase in the cost of bitcoin is most likely a temporary phenomenon, and it is too early to talk about a long-term growth trend.
