Bitcoin Holds Steady Above $24.5K as European Banking Crisis Eases
BTC has remained in a range between $24,200 and $25,200 over the past 24 hours. Investors are hoping the Federal Reserve relaxes its recent monetary hawkishness.
Mar 16, 2023 at 8:58 p.m.
Updated Mar 16, 2023 at 10:10 p.m.
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Bitcoin maintained steady above $24,500 after the Swiss National Bank seemed to head off a European banking crisis by agreeing to lend troubled investment bank Credit Suisse about $50 billion, and investors’ hopes rose that the U.S. central bank would turn more dovish at its next rate-setting meeting.
The largest cryptocurrency by market capitalization was trading at $24,791, up 1.4% over the past 24 hours, according to CoinDesk data. BTC has remained largely range-bound between $24,000 and $25,000 since Tuesday afternoon when U.S. inflation data took a slight turn for the better. BTC is up 19% over the week amid renewed market optimism about the U.S. banking sector and the Federal Reserve potentially suspending its current regime of interest rate hikes.
On Wednesday, the CME FedWatch Tool, a predictor of interest rate decisions, forecast a 45% chance of a zero basis point rate hike. It’s now predicting an 80.5% chance of a 25 basis point (bps) increase. Both numbers contrast sharply from last week when the CME showed a 68% chance of a 50 bps rate boost.
"The resilience of BTC since shows that while it's clear now that BTC is not an inflation hedge, it certainly is a hedge against monetary irresponsibility," Singapore-based crypto options trading firm QCP Capital wrote in a Telegram broadcast note.https://www.coindesk.com/markets/2023/03/16/bitcoin-holds-steady-above-25k-as-euro-banking-crisis-eases/
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