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Bitcoin Surges to $28,459 on UBS-Credit Suisse $3.2 Billion Deal; Fed Set to Approve 0.25% Interest Rate Hike

On March 19th, Bitcoin’s value experienced a surge, surpassing the $28,000 threshold and achieving a 16% increase over the past seven days. This boost came after UBS announced its acquisition of Credit Suisse for $3.2 billion over the weekend.

As of the time of writing, the King of Crypto is trading at $28,050, showing a 2.6% increase in the last 24 hours. The highest point reached by the cryptocurrency during the day was $28,459, while its lowest point was $26,877. Throughout the week, Bitcoin gained over 37% against the US dollar, with its market capitalization growing by $193.2 billion in 2023. With fears of a global banking crisis on the rise, Bitcoin has outperformed Wall Street bank stocks, showcasing a year-to-date gain of 66%. Bitcoin’s rise is particularly notable given that it has gained about 65% versus S&P 500’s 2.5% gains and Nasdaq’s 15% decline in 2023.

BTC/USD 1 hour-chart on Bitstamp | Source: TradingView

Forced liquidations for short positions are also snowballing, with over 42,500 traders losing their positions and being liquidated, according to Coinglass data. In the past 24 hours, there have been forced liquidations totaling $121 million. This highlights the high volatility of the cryptocurrency market, which has been a cause of concern for many investors.

Source: Coinglass

UBS’s takeover of Credit Suisse was viewed as a solution to secure financial stability and protect the Swiss economy in this exceptional situation, according to a statement from the Swiss National Bank. The central bank worked with the Swiss government and the Swiss Financial Market Supervisory Authority to bring about the combination of the country’s two largest banks.

In another news of Fed, the Federal Reserve is likely to approve a quarter-percentage-point interest rate increase next week, according to market pricing and many Wall Street experts. Despite turmoil in the banking industry and uncertainty ahead, the consensus is that Fed Chairman Jerome Powell and his fellow central bankers will want to signal that while they are attuned to the financial sector upheaval, it’s important to continue the fight to bring down inflation. This increase could have a significant impact on the cryptocurrency market and the wider financial system, as it may lead to investors moving their money to more traditional assets.

In summary, Bitcoin’s surge in value comes amid rising fears of a global banking crisis and UBS’s takeover of Credit Suisse. The high volatility of the cryptocurrency market is evident through forced liquidations for short positions. Meanwhile, the Federal Reserve is expected to approve a quarter-percentage-point interest rate increase next week, which could have a significant impact on the financial system.

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