It has now been more than 24 hours since the Federal Reserve announced that it would raise interest rates by 0.25 percent. After that decision, Bitcoin mainly started falling during the press conference of Federal Reserve Chairman Jerome Powell. In that fall, Bitcoin even fell below $ 27,000. Calm has now returned and Bitcoin is at a very tidy $ 28,190.
Attack on crypto?
According to Benoit Bosc of GSR Markets there is currently a gigantic attack on the crypto world going on. “The crypto world is under attack. We are currently seeing a lot of authorities trying to create clarity with a heavy hand, but also that the banking crisis mainly affects banks that serve crypto companies,” said Bosc.
“As a result, you currently mainly see a flight to quality and the larger projects. Bitcoin benefited the most from that and has been on a rally since the start of the banking woes,” Bosc continues. Which then also refers to the Federal Reserve, which apparently did not consider rate cuts and even refused a pause.
“Because of the problems with the stablecoins at the moment, Bitcoin suddenly seems more stable and safe,” Bosc philosophizes about the Bitcoin revival. Somewhere Bitcoin is also more stable, because it does not depend on anything at all. In the case of stablecoins, you always run the risk that the issuer does not have its finances in order.
The market is strong
What makes Bosc the most optimistic at the moment is the resilience of the market. According to him, it is striking how the market has processed all the bad news of the past few months. “A few years ago that would have destroyed the market. It is very interesting to see how strong the market is,” said Bosc.
Incidentally, he currently sees no reason for a “risk-on rally”, which means that he does not expect a new bull market at this time. That can of course change quickly if central banks have to intervene again because something breaks in the system.
In principle, the banking crisis is not over yet and we can only hope that it stays with Silicon Valley Bank and Signature Bank. If not, then the money printers will probably need to turn on again and that could give Bitcoin another push up.
