As of March 18, Bitcoin price began trading at $27,350. Within the past 24 hours, its value has increased by 2.75%, currently trading at $27,416. BTC/USD has experienced price fluctuations, reaching its highest value at $27,605 and its lowest at $27,053.

Moreover, its value has surged by more than 35% in the last week. The recent news of bank failures and concerns about potential interest rate hikes seem to have played a significant role in driving up the value of Bitcoin.

The Impact of the US Banking Crisis on the Financial Market and Cryptocurrency Prices

The sudden collapse of Silvergate, Silicon Valley Bank (SVB), and Signature Bank last week drew attention to the vulnerability of the traditional banking industry. According to several analysts, unfavorable market conditions and weak risk management were significant factors in the collapses of SVB and Silvergate.

The collapse of SVB had a ripple effect on the global banking industry, with Credit Suisse, the second-largest Swiss banking firm, experiencing a serious crisis that required the intervention of the Swiss Central Bank with a $54 billion lifeline.

In the face of the banking crisis, investors have recognized the reliability of cryptocurrency prices. As concerns about a potential global financial crisis continue to mount, the value of BTC/USD has continued to climb.

The Relationship Between the Federal Reserve and BTC

The Federal Reserve’s overnight balance sheet data showed that around $300 billion had been injected into the economy as part of the solution to the financial crisis, which served as a catalyst for a new upward trend.

This essentially reversed months of liquidity withdrawal under the Federal Reserve’s quantitative tightening (QT), and experts predict the restart of the opposite phenomenon – quantitative easing (QE).

Following the Fed’s reversal of quantitative tightening that has been in place since 2021, BTC/USD bulls are looking to push higher.

In addition, recent concerns about a global banking collapse have reduced the likelihood of the Fed increasing interest rates by 50 basis points. Reuters suggests that the FOMC may only raise the federal funds rate by 25 basis points at its meeting on March 22.

Inflation and Federal Reserve rate hikes have a significant impact on the value of Bitcoin. When the Fed’s interest rate decision becomes more uncertain, the dollar index decreases, currently at 103.86, and may continue to decline. Therefore, a declining US dollar can be advantageous for BTC/USD.

Binance CEO Praises BTC’s Functionality for Resistance to Inflationary Pressures

On March 18, the CEO of Binance, Changpeng Zhao, praised a fundamental aspect of Bitcoin technology on Twitter. He highlighted the cryptocurrency’s resistance to inflationary pressures, a quality that traditional fiat currencies lack. Zhao tweeted that, unlike fiat currencies, nobody can print Bitcoin out of thin air, and mining is a function.

Zhao’s remarks came after the confirmation of several claims that the US government issued $300 billion “out of thin air” as a rescue package after the failure of three significant banks in the country.

BTC/USD has surpassed $27,500 in the last 24 hours, according to statistics from the market monitoring website CoinMarketCap. This price level is one of the highest BTC/USD has reached in the past nine months.

Top Cryptocurrencies to Invest in Today as Alternatives to Bitcoin

In addition to Bitcoin, there are several altcoins in the market that show significant potential. The B2C team has performed an analysis and compiled a list of the top cryptocurrencies for 2023.

See Best Crypto to Invest in 2023

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