Bitcoin Price Prediction as BTC Hits Highest Level in 9 Months – How High Can BTC Go?
As Bitcoin hits its highest level in nine months, many are wondering just how high the cryptocurrency can go. With a market cap of over $1 trillion and a surge in demand, as investors seek a safe haven amid economic uncertainty, Bitcoin’s price has skyrocketed in recent months.
This has left many wondering whether the cryptocurrency is in the midst of a sustained bull run or whether it is due for a correction.
US Banking Crisis: Impact on Financial Market and Cryptocurrency Prices
Last week, the abrupt downfall of three banks, namely Silvergate, Silicon Valley Bank (SVB), and Signature Bank, highlighted the fragility of the conventional banking sector. Analysts have identified unfavorable market conditions and inadequate risk management as major contributors to the collapse of SVB and Silvergate.
The downfall of SVB had far-reaching implications for the global banking industry. Credit Suisse, the second-largest Swiss banking institution, was also affected, facing a severe crisis that necessitated a $54 billion rescue package from the Swiss Central Bank.
With the banking crisis unfolding, investors are turning to cryptocurrency as a reliable alternative. As fears of a potential global financial crisis escalate, the value of BTC/USD has continued to rise.
The Connection Between the Federal Reserve and BTC
The Federal Reserve’s overnight balance sheet data revealed that approximately $300 billion had been injected into the economy to address the financial crisis, sparking a new upward trend.
This action effectively reversed months of liquidity withdrawal under the Federal Reserve’s quantitative tightening (QT) policy, and experts are anticipating the reintroduction of quantitative easing (QE).
The recent reversal of the Federal Reserve’s quantitative tightening policy, which had been in effect since 2021, has buoyed BTC/USD bulls, who are now looking to push the price higher.
Additionally, growing concerns about a global banking collapse have decreased the likelihood of the Fed implementing a 50 basis point interest rate hike. Instead, Reuters predicts that the Federal Open Market Committee (FOMC) may only raise the federal funds rate by 25 basis points at its upcoming meeting on March 22.
Inflation and Federal Reserve rate hikes can have a significant impact on the value of Bitcoin. When the Fed’s interest rate decision becomes uncertain, the dollar index tends to decrease.
Currently, the dollar index is at 103.86 and may continue to decline, which can be advantageous for BTC/USD as a declining US dollar can lead to a rise in Bitcoin’s value.
Binance CEO: BTC Resistant to Inflationary Pressures
On March 18, Binance CEO Changpeng Zhao took to Twitter to praise a fundamental feature of Bitcoin technology. He emphasized the cryptocurrency’s ability to resist inflationary pressures, a quality that traditional fiat currencies lack.
In his tweet, Zhao pointed out that, unlike fiat currencies, Bitcoin cannot be printed out of thin air by anyone, and mining is a key function in its creation.
Zhao’s comments came in response to reports that the US government had issued a $300 billion rescue package “out of thin air” following the collapse of three major banks in the country.
In the last 24 hours, BTC/USD has surpassed $27,500, according to data from the market monitoring website CoinMarketCap. This price level is one of the highest that BTC/USD has reached in the past nine months.
On March 18, Bitcoin began trading at $27,350. Within the past 24 hours, its value has increased by 2.75%, and it is currently trading at $27,416. BTC/USD has experienced fluctuations, reaching its highest value at $27,605 and its lowest at $27,053.
Furthermore, the value of Bitcoin has surged by more than 35% in the past week, with the recent news of bank failures and concerns about potential interest rate hikes playing a significant role in driving up its value.
Bitcoin’s price saw a sharp decline after a brief consolidation period at around $26,500. This led to a short-term negative trend as it fell below the $25,000 and $25,500 support levels.
As of Saturday, the BTC/USD pair is trading with a strong bullish bias, but it is facing immediate resistance near the $27,750 level. A bullish breakout above this level could propel the Bitcoin price toward the $30,750 milestone.
However, if the $27,750 level proves to be a resistance point, a sell-off may occur, potentially driving the price down to $25,200 or even $23,020.
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Top 15 Cryptocurrencies to Watch in 2023
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