20. June 2024

Bitcoin Price Hits New 9-Month High as Fed Injects $300B

• Bitcoin (BTC) hit a new nine-month high on March 17, as the US banking crisis boosted crypto markets.
• The Federal Reserve injected $300 billion into the economy, undoing months of liquidity removal under quantitative tightening.
• Bitcoin commentator Arthur Hayes revealed he is ditching stocks for cryptocurrency investments.

Bitcoin Reaches Nine-Month High

Bitcoin (BTC) hit a new nine-month high on March 17, as the US banking crisis boosted crypto markets. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $27,025 on Bitstamp before consolidating at around $26,500.

Fed Injects Massive Liquidity

The catalyst for fresh upside came in the form of Federal Reserve balance sheet data overnight which showed almost $300 billion being injected into the economy as part of the banking crisis response. This effectively undid months of liquidity removal under the Fed’s quantitative tightening (QT), restarting quantitative easing (QE).

Crypto Market Commentators React

Commentators were quick to react to this news with trader and analyst Scott Melker commenting that “they’ll tell you it’s not QE, but the numbers don’t lie” while popular analytics resource Stockmoney Lizards summarized that “Bitcoin is trying to fly — this resistance line will break sooner or later”. Cointelegraph contributor Michaël van de Poppe noted that if Bitcoin holds above $26K then it could target levels up around $28–30K.

Arthur Hayes Ditches Stocks for Crypto

In his latest blog post, BitMEX CEO Arthur Hayes revealed he is ditching stocks for cryptocurrency investments due to his belief that macroeconomic conditions are creating an environment where cryptocurrencies offer more opportunities than traditional assets such as stocks and bonds. He commented: “I believe now is an excellent time to increase one’s exposure to digital assets.”

Conclusion

The events of March 17th saw Bitcoin reach a nine month high thanks in part to massive liquidity injections by the US Federal Reserve and further fueled by comments from commentators such as Scott Melker and Cointelegraph contributor Michaël van de Poppe who suggested Bitcoin could reach higher levels if it can hold above key price points. Meanwhile Arthur Hayes has suggested that now is an excellent time to increase one’s exposure to digital assets due to macroeconomic conditions creating more opportunity than traditional assets such as stocks and bonds.