Bitcoin (BTC) fell from $23,500 to $22,400 10 days ago and remained stuck there until last Tuesday. Then bitcoin began to fall further, taking a deep plunge on Thursday and breaking below $19,600 on Friday. Yesterday evening the market suddenly started to rise sharply. Bitcoin shot back to the price where the crash started last week. The price briefly touched $22,600, but dropped to $22,160 on Binance and €20,740 on Bitvavo by this morning.
This means that the bitcoin price is 9.2% up today. Trading volume increased by 69% in the last 24 hours. The total market capitalization is $430 billion and the dominance is 42.3%. The Fear & Greed Index comes out at 49 (Neutral).
Bitcoin Fear and Greed Index is 49 — Neutral
Current price: $22,185 pic.twitter.com/IC1vcNF3E7
— Bitcoin Fear and Greed Index (@BitcoinFear) March 13, 2023
Fed intervenes in banks, market sentiment turns
The problems originally arose at crypto bank Silverbank, but then Silicon Valley Bank and even Signature Bank also ran into problems. Yesterday evening, the Federal Reserve therefore announced that the US central bank is intervening with a financing of no less than $ 25 billion.
@federalreserve announces Bank Term Funding Program (BTFP) to support American businesses and households, assure banks have ability to meet needs of all their depositors: https://t.co/JIMjkooIDV
— Federal Reserve (@federalreserve) March 12, 2023
This causes sentiment to turn completely around in the financial markets. Last week, Fed Chair Jerome Powell led 80% of markets to expect a 0.5% rate hike. This has now reversed and 98% expect an increase of 0.25%.
Thursday we had a 68% chance of 50bps rate rise next week.
Now a 98.2% chance of 25bps and 1.8% for no rate rise. https://t.co/g8HO3s6jSH pic.twitter.com/W6onoY1oG7
— Decentrader (@decentrader) March 13, 2023
Morning CPI, immediately Biden speech
The next Federal Open Market Committee (FOMC) meeting will be March 21-22, but tomorrow we will have the US consumer price index (CPI) first. These inflation figures could also cause a lot of volatility last year.
It may be too early to say whether the problems concerning the banks are actually over. A speech from President Biden about the situation will follow later today.
*U.S. PRESIDENT BIDEN TO DELIVER REMARKS ON ‘MAINTAINING A RESILIENT BANKING SYSTEM’ AT 8:00AM ET MONDAY – WHITE HOUSE pic.twitter.com/gjGc3bWfos
— Investing.com (@Investingcom) March 13, 2023
Binance wants to buy bitcoin
The USDC stablecoin now seems to be restoring its link, more on that later on Crypto Insiders. Meanwhile, Binance plans to potentially spend up to $1 billion in BTC, BNB, and ETH.
Given the changes in stable coins and banks, #Binance will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including #BTC, #BNB and ETH. Some fund movements will occur on-chain. Transparency.
— CZ 🔶 Binance (@cz_binance) March 13, 2023
Bitcoin mining difficulty to new record
On Friday, the so-called bitcoin mining difficulty was also increased. According to data from BTC.com. this was an increase of 1.16% to a new all-time high of 43.55 T at an average hash rate of 311.69 exahashes per second (EH/s). A small jump from last time’s 10%, but still an increase in pressure on miners who have recently sold large parts of their supplies.
Miners selling the most amount of #Bitcoin since the China ban during 2021 – coming from poolin pic.twitter.com/1GMlK9jDx8
— James V. Streets (@jimmyvs24) March 12, 2023