Bitcoin rose to a new nine-month high of $27.000
Bitcoin hit a new nine-month high two days ago, which it has held until today, as the latest developments in the escalating US banking crisis boosted crypto markets. Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD hit $27.025 on Bitstamp before the consolidation.
The catalyst for the new growth came in the form of overnight balance sheet data from the Federal Reserve, which showed that nearly $300 billion had been injected into the economy as part of the response to the banking crisis.
The event effectively reversed several months of liquidity removal under the Fed's quantitative easing (QT), which commentators were quick to call a restart of the opposite phenomenon – quantitative easing (QE).
“They'll tell you it's not QE, but the numbers don't lie. About half of the decline from a year of quantitative tightening was erased in one week,” commented trader, analyst and podcast host Scott Melker, known as “The Wolf of All Streets”.
Bitcoin thus followed the strong performance of US stocks the previous day.
For market commentators, there was a belief that the uptrend could continue despite the stock producing a sideways action on the day.