Bitcoin recovers to $ 24,000 ─ Bank failure concerns eased, expectations for Fed’s dovish attitude rise | coindesk JAPAN | Coindesk Japan

Bitcoin (BTC) rose above $24,000 for the first time in more than two weeks on the 13th. U.S. regulators intervened in withdrawals at Silicon Valley and Signature banks to spread reassurance, and hopes that a possible collapse of the banking sector would make the Fed less hawkish. increased.

Last Friday, the 10th, the news of the bankruptcy of Silicon Valley Bank broke, and it fell below $ 20,000.

Many analysts said the market was buoyed by U.S. regulators’ decision to take action against signature banks and Silicon Valley banks late Wednesday.

“The Fed’s depositor relief measures have eased fears about the risk of contagion, and a short squeeze has occurred,” said Martin Leinweber, digital asset product specialist at MarketVector Indexes.

Friday’s rally caught traders betting on price declines off guard, and about $81 million of short positions were liquidated. “Most of these positions were set on the 10th when concerns rose,” Reinweber said. Short squeezes tend to push prices even higher.

Fed Goes Dovish?

Joe DiPasquale, CEO of crypto asset management company BitBull Capital, also said that USD coin (USDC) was outflow to Bitcoin, Binance used recovery fund Binance USD (BUSD), bitcoin and Ethereum He said the decision to buy (ETH) also contributed to the price increase.

On the 12th, Binance said it would convert $1 billion worth of Binance USD into Bitcoin, Ethereum, Binance Coin (BNB) and more to support the market.

Markets may also have been boosted by the belief that the Fed, which has been criticized in recent months for being too aggressive in raising rates, will turn to a dovish stance.

Analysts at Goldman Sachs said on Wednesday that the next meeting of the Federal Open Market Committee (FOMC) on March 22 will not raise interest rates, given the impact on the banking sector.

But Reinweber said that despite the bailout, sentiment remained “anxious and cautious”. He believes it has created concerns about “more bank failures” and companies “cash-flow insecure.”

bitcoin story

Joshua Frank, co-founder and CEO of digital asset information service The Tie, expressed a cautious but optimistic view.

“The loss of Silvergate Bank, Silicon Valley Bank and Signature Bank is devastating for US-based crypto firms. Even so, the crypto market has responded well to the bailout, at least temporarily. Given the uncertainty surrounding American banks, the narrative of bitcoin as a risk hedge and safe-haven asset swelled.”

“While the short-term is positive, there are still many long-term macro factors that are alarming,” Frank added. Financial institutions have gone bankrupt, and if cryptoassets, especially Bitcoin, continue to recover, they will need broad support for a new narrative, like the one we saw in 2020 and 2021 with the halving and inflation hedge narrative. Let’s go,” he continued.

altcoins, etc.

Ethereum is up more than 7% near $1,675. Layer 2 protocol Optimism (OP) is up 21%, liquid staking token Lido (LDO) is up 15%, and the CoinDesk Market Index (CMI), which measures overall crypto market performance, is up more than 10%.

The stock market is mixed. The S&P 500 fell 0.1%, the Dow Jones Industrial Average fell 0.2% and the Nasdaq rose 0.4%.

Among crypto-related stocks, Marathon Digital Holdings rose 25% after saying it still had access to $142 million in Signature Bank deposits.

February’s consumer price index (CPI) will be released on the 14th.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: CoinDesk
｜Original: Bitcoin Surges as Regulator’s Intervention Eases Fears of Contagion, Fuels Hopes for Fed Dovishness; Binance’s $1B Conversion Helps, Too