Since the failure of Silicon Valley Bank and Signature Bank, the U.S. Federal Reserve has begun printing money to save cash-strapped institutions, increasing its balance sheet by $300 billion. As a result, the values of Bitcoin and Ethereum have skyrocketed, and the overall sentiment in the cryptocurrency market has turned bullish. A total of $164.8 billion was borrowed by American banks from the US Federal Reserve. On of March 15, borrowing at the Fed’s discount window increased from $4.58 billion the prior week to $152.9 billion. The Fed’s emergency funding facility will assist banks in obtaining short-term funding. The previous record high, reached during the financial crisis in 2008, was $111 billion.
In addition, to avert bank runs following the failure of Silicon Valley Bank, the Federal Reserve provided an additional $11.9 billion in loans to American banks through its newly established emergency Bank Term Financing Program. Moreover, $142.8 billion was given to federal regulators or organizations to oversee the two banks. As the balance sheet of the U.S. Federal Reserve grows by $300 billion, according to Cameron Winklevoss, co-founder of the cryptocurrency exchange Gemini, he is more optimistic about Bitcoin.
In the meantime, co-founder of BitMEX Arthur Hayes disclosed that the situation facing US banks has worsened. Banks’ bond portfolios are $2.2 trillion in the red, increasing the likelihood of a US debt default and a recession. He claims that anyone may make up for a very profitable crypto bull market, though, if they trade this right.
“It’s so broken, the banking system. They have bond losses lying there for $2.2 trillion. The biggest bank rescue in history, #banktermfundingprogram, is still going strong!” Ethereum and Bitcoin Prices To Rise Significantly The price of one bitcoin (BTC) has increased by 6% over the past day and by 30% over the past week. It is presently trading at $25,847. $24,431 is the 24-hour low, and $25,943 is the 24-hour high. The fact that the trading volume has not yet increased shows that traders are still waiting for an entry. Earlier, CoinGape predicted that the price of Bitcoin would rise once again to $25K and maintain above the 200-WMA at $25.3K for a significant upward movement.
On-chain data and analysts hinted that a jump to $30K would be possible. Because of the rising Coinbase premium and the general bullishness in the cryptocurrency industry, the price of Ethereum is also experiencing a significant upward movement. The price of ETH is currently $1,710, up 4% over the previous day. The Shanghai update is scheduled to launch on April 12 by Ethereum developers.
