Bitcoin Rises Above $28,000 In Full-Blowed Mega Rally As Ether, Cardano, XRP See Super Bullish Uplift ⋆ ZyCrypto
Bitcoin’s price surged on Sunday, coming close to $28,000 on various crypto exchanges after breaking the key psychological level of $27,500 earlier in the day.
At press time, the pioneer cryptocurrency was trading at $28,080, up roughly 8% in the past day. Ether followed closely, rising over 5% to trade at $1,813 at press time. Interestingly, year-to-date BTC and Ether have grown by 60% and 45% respectively, recovering from all losses since the start of Q4 2022.
Other cryptocurrencies also benefited from the surge, with XRP, BNB and Cardano increasing by over 5% over the same period. The massive surge triggered over $164 million worth of liquidations in the past 24 hours, with over 45,000 card traders caught in the crosshairs, according to data from Coinglass.
The broad rise in the crypto markets comes amid macroeconomic headwinds that have directly affected the sector. Last week’s combined implosion of Silicon Valley Bank (SVB) and Signature Bank caused a sharp drop in cryptocurrencies, with calls to de-bank crypto-related firms from various regulators.
The intervention of the US Treasury and the FDIC to ensure that all depositors of the two cash-strapped banks would be made whole, however, stabilized the markets, with major crypto assets recovering.
After the last banking crisis, the FED started pumping up its balance sheet for the first time since it started raising interest rates. On March 15, the FED provided $297 billion in emergency funds to prevent further contagion for the banking sector. This appears to have sparked a massive shift to crypto, as more investors see the sector as a safe haven to stave off a scenario similar to the 2008 global financial crisis.
– Four large banks are bankrupt. At first it was still said that we are not going to save the banks. And then they were saved again, like in 2008/2009. Therefore, many are now looking for a safe haven for their assets. And this is Bitcoin and altcoins, market analyst Andreas Muller tweeted.
Meanwhile, the ongoing crypto market strength has increased the chances of a mining rally, according to various investors. “Checkmate,” the lead chain analyst at Glassnode, stated that he expects Bitcoin to be a spot-drive market for some time, suggesting that the asset could rise higher given the “volume of leverage, and even casino sites that we flushed out last year.”
“Should we break out of this 2015-style bottom, we may well enter a spot-driven market similar to the 2016+ era,” he wrote.
According to Michaël van de Poppe, CEO and founder of crypto trading firm Eight Global, Bitcoin needs to hold above $26,000 to push higher. However, in a tweet today, the pundit emphasized that “this push must happen in the coming hours”; otherwise, bearish divergences could trigger a potential reversal.