Bitcoin Price Jumps 6% Rejuvenating Hopes of $30k Amid Banking Crisis
After rejecting $26.5k earlier this week, Bitcoin bulls pushed beyond $25k during the early Asian market. According to our latest crypto market data, Bitcoin price exchanges around $25.9k at the time of reporting, up approximately 6.5 percent in the past 25 hours. As the United States federal government prints more money to save the struggling banking industry, the Bitcoin market is expected to benefit from investors fleeing riskier assets significantly.
Moreover, the Federal Reserve has added $300 billion to its balance sheet over the past week, the highest in a short period since Black Thursday in 2020. According to banking giant JPMorgan Chase in a note to investors on Wednesday, the Federal Reserve May inject up to $2 trillion into the banking system following the collapse of three lenders over the past week.
As a result, the overall inflation is expected to rise despite the Fed’s initiative to bring it down to 2 percent. With Bitcoin’s inflation rate at 1.71 percent per annum, more investors are likely to ditch the fiat currencies for the risky digital asset.
Closer Look at Bitcoin Market
Bitcoin price is retesting the macro downtrend resistance level that began in late 2021. The Bitcoin market has recently increased its rate of decoupling from equities correlation, with the Nasdaq relation to the lowest. With the Fed’s action to print more Maloney to save the banking sector, the correlation is expected to widen further.
Meanwhile, on-chain data has shown that the Bitcoin market is growing rapidly. Notably, the total amount of Bitcoin addresses has grown by 1.71M, a 3.95% increase in the last two months.
Furthermore, the largest Bitcoin on-chain transactions of $1 billion have recently taken place from a single whale.