- Bitcoin and Ethereum stage mini rally following Fed’s $300 billion surge in its balance sheet.
- Cameron Winklevoss, co-founder of crypto exchange Gemini believes that this is the right time to buy.
The Bitcoin price has surged by 30 percent in the last seven days and 5 percent in the last 24 hours to trade at $26,090.61. Ethereum is also up by 21 percent in the last seven days and 3 percent in the last 24 hours. ETH is currently trading at $1,718.59. The price surge has been linked to the $300 billion increase in the US Federal Reserve’s balance sheet. This was after the Central Bank started money printing to rescue distressed banks after the collapse of Silicon Valley Bank and Signature Bank.
According to a report, $164.8 billion was borrowed from the U.S. Federal Reserve by the U.S. banks. This is to assist banks to secure short-term funding for their needs. Under the new emergency Bank Term Funding Program, the Federal Reserve lent another $11.9 billion to U.S. banks to keep them in operation following the collapse of Silicon Valley Bank. Also, $142.8 billion was provided to the federal regulators or agencies to manage the two banks.
Fed fuels Bitcoin above $26K after $300 billion print
According to BitMEX co-founder Arthur Hayes, US banks are in a serious crisis. He further disclosed that banks are $2.2 trillion underwater on their bond portfolios. However, anyone who can correctly manage the situation can make up for a very profitable crypto bull run.
The banking system is so f-ed. They are sitting on $2.2 trillion of bond losses. Long Live #banktermfundingprogram the largest bank bailout in history!
Cameron Winklevoss, co-founder of crypto exchange Gemini has stated that the rise of the Federal Reserve’s balance sheet by $300 billion sets Bitcoin up for a bullish run. Winklevoss thinks it is the time to buy Bitcoin.
The Fed just gave everyone $300 billion more reasons to buy bitcoin.
CryptoQuant observed MRVR ratio of Bitcoin rises to 1.13
A recent report by CryptoQuant’s market turbulence analysis reported that Bitcoin’s Market Value to Realized Value (MVRV) ratio has hit above its 365-day Moving Average (MA). MVRV describes the ratio of a cryptocurrency’s market cap to its realized cap. It is also used to assess an asset’s valuation as well as its market tops and bottoms. When the MVRV ratio is above 3.7, it indicates an overvalue or a market top. When it is below 1, it indicates a possible market bottom.
The current MVRV of the Bitcoin ratio is 1.13, and it is hitting this point for the first time since the market pullback in 2022. This indicates a possible return to a bull market.
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It is reported that the Fed’s Funding Term helped Circle’s USDC which depegged from the US dollar last week to come back to a $1. This is in addition to helping Bitcoin to find support for the 1 million to 3 million age bands. CryptoQuant observes that whales have been restrained from selling their assets after a makeshift trade-off. Stablecoin Supply Ratio (SSR) which measures the demand-and-supply mechanic between Bitcoin and stablecoins is said to be at a low point according to Glassnode’s datasets. The SSR is 3.54, indicating that there is not enough stablecoin supply and purchasing power for Bitcoin.