Bitcoin [BTC] zooms past $28k as bulls make thunderous comeback
- BTC increased its value by 25% since last week, while it grew by 15% on a month-to-date (MTD) basis.
- The total number of BTC short liquidations swelled to about $366 million over the last week.
Bitcoin [BTC], the largest cryptocurrency by market cap, surged past $28,000 during Sunday trading hours to post its best performance since June last year.
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As per CoinMarketCap, BTC increased its value by 25% since last week, while on a month-to-date (MTD) basis the king coin grew by 15%.
The stupendous performance came amidst the crisis induced by the collapse of big institutions like Silicon Valley Bank and Signature Bank, with more investors shifting funds into the crypto economy.
BTC’s upswing pushed global crypto market capitalization to $1.16 trillion with a marginal increase over the last day.
Bulls return and how!
The sharp uptick in BTC’s price intensified discussion around the onset of the crypto market’s bull cycle. As per CryptoQuant, Bitcoin’s MVRV ratio hit 1.405 at press time. Generally, when the ratio is above 1 and below 3.7 (overvalued market), it signals a bull market phase.
Another important metric to consider was the Long/Short Liquidations. The total number of short liquidations swelled to about $366 million over the last week, as per Coinglass.
This trend is very similar to the one seen at the start of 2023 when BTC made a sharp move upward after the lows of post-FTX crisis.
Bitcoin supply in profit increases
Furthermore, the proportion of Bitcoin’s circulating supply that is held in profit soared to over 70%, well over its 365-day moving average. A value of 90% or more was seen to have occurred during market tops.
Hence, it implied that the bullish cycle can continue for good without triggering an intense sell-off.
The crypto community went euphoric with the rise in BTC and the sentiment shifted towards greed. This was also reflected in the increase in the number of long positions taken for the coin, data from Coinglass showed.
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The rally followed an announcement by the Federal Reserve where it talked about a coordinated effort with central banks of other countries to enhance the provision of U.S. dollar liquidity, to help financial institutions amidst the ongoing turmoil in the market.
The U.S. Fed rate hike decision will be announced on 22 March during the next Federal Open Market Committee (FOMC) meeting. There is a big possibility of Fed raising interest rates by 25bps. The next movement of crypto markets will hinge around this decision.
The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing a coordinated action to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.…
— Wu Blockchain (@WuBlockchain) March 19, 2023