What is the reason for the increase in the price of Bitcoin?

[BD Technical]

What is the reason for the increase in the price of Bitcoin?

The Federal Reserve is adding another $300 billion to their economy.  This is basically one of the main reasons behind the increase in the price of Bitcoin.  This news has affected the prices of stocks and cryptocurrencies everywhere.  In this regard, market researcher Holzer said, the central bank has added a lot of dollars to the economy, so the market is seeing so much growth all around.

The failure of Silicon Valley Bank and Signature Bank was the reason why the Federal Reserve decided to inject dollars into the economy on an emergency basis.  Banks borrowed about $150 billion from the Federal Reserve, the highest since the 2008 global recession.

Adding dollars to the economy is not new, nor is it the first time that banks lend dollars at low interest rates.  During Corona in 2020 the Federal Reserve added dollars to their economy after which we saw Bitcoin rise from less than $4000 to almost $7000.  Many believe that the US will add more dollars to its economy in the coming days, which could push the price of Bitcoin to new highs.

The former CEO of Bitmex said that the more currencies are added to the global economy, the more likely the price of Bitcoin will rise.  But the central banks of China and Japan are doing exactly the same thing as the Federal Reserve.

Thanks Guyes.

[Plaguedeath]

During Corona in 2020 the Federal Reserve added dollars to their economy after which we saw Bitcoin rise from less than $4000 to almost $7000.  Many believe that the US will add more dollars to its economy in the coming days, which could push the price of Bitcoin to new highs.

Wrong, during corona pandemic in 2020 the FED injected more money at March 13, 2020 [1], actually when the FED announce to inject more money Bitcoin price is dump from $8K to $5K, it's not increasing.

The collapse of 2 banks and FED injected more money in this year had no relation with the sudden pump of Bitcoin price. FED prints new money will make the value of the dollars decreased, but it doesn't mean it will increase Bitcoin price.



[1] https://www.vox.com/policy-and-politics/2020/3/13/21178457/1-5-trillion-stimulus-loan-fed-federal-reserve

[OcTradism]

The Federal Reserve is adding another $300 billion to their economy.  This is basically one of the main reasons behind the increase in the price of Bitcoin.

FED and other central banks globally printed huge new circulating supply of fiat currencies since Covid-19 pandemic. It is a common story in the past 3 years and not new with us.

Do you think why Bitcoin rose to $69k because of money printing, assume it is true. Do you think why it fell from $69k to $16k, because of same reason money printing?
Now you turned to think that it is rising and will rise more because of money printing.

Is any logic in your thinking?

[jossiel]

We've got having two source of printing, stablecoins printing their new supplies and the FED as well. These are the two injections that we're having to the market but that doesn't mean that bitcoin is solely reliant on it.

These can't be avoided and it's them, the FED and US government that's deciding on this one. While the impact of it is really being felt by most of us, we're not just abiding with the negativity of it but as well as the beneficial part for bitcoin and the whole crypto market.

[uche6215]

As of yesterday, the price of bitcoin was $28k and today the price of bitcoin is $27k.
From my understanding, the price always rises once there is an increase in directives, and this makes those who has invested on bitcoin happier than those that haven't yet to invest on Bitcoin.

[lionheart78]

I read an article[1] stating the reason why Bitcoin price is currently uptrending and it does make sense.

The article stated that some of the factors why Bitcoin price is surging because of the following:

• Banks are failing
• Stablecoins are not stable and they need banks to be stable
• Federal reserves pulling back on rate hikes.

These events weaken people's belief in a centralized financial system and turn their trust on Bitcoin making the market sentiment bullish.

This is the chart presented by the article on how Bitcoin price trends after the news of the bank runs and bank failures which gives proof that bank failure give a positive impact on Bitcoin market





[1] https://www.coindesk.com/consensus-magazine/2023/03/17/bitcoin-banking-crisis-silicon-valley-bank-crypto/

[Upgrade00]

Include sources to reports you make in your threads for other users to read more if they want to. After a bit of research I found this link which talks about the $300 billion emergency fund and how it was distributed; https://www.pbs.org/newshour/economy/federal-reserve-lent-300-billion-in-emergency-funds-to-banks-in-the-past-week

Another failed firm, another injection of funds to fix the problem and another hole in the balance sheet. The fiat cycle continues, however flawed the system is, it forces itself to keep turning.

On the Bitcoin price it has been experiencing good movements for a while now, that cannot be pinned on any particular reason.

[The Cryptovator]

Perhaps the OP is correct; skeptical. When more investors show interest in it, bitcoin usually increases in price. That indicates to start pumping and raise the pressure. Who knows, though, what is really driving the pressure to buy. I haven't noticed any significant good news, but it appears like Bitcoin simply started pumping up. But I agree with the OP that if money were actually injected into the economy, the amount of fiat in circulation might have increased. As a result, fiat is also being injected into bitcoin. Hence, to me, this is a viable explanation.

[Jating]

During Corona in 2020 the Federal Reserve added dollars to their economy after which we saw Bitcoin rise from less than $4000 to almost $7000.  Many believe that the US will add more dollars to its economy in the coming days, which could push the price of Bitcoin to new highs.

Wrong, during corona pandemic in 2020 the FED injected more money at March 13, 2020 [1], actually when the FED announce to inject more money Bitcoin price is dump from $8K to $5K, it's not increasing.

I think we can't compare though the Feds injecting more money that time as to today.

People panic because of the virus, there are no clear understanding as what or who causes it and obviously not just crypto or bitcoin falls that time, every traditional market collapses, stocks, oil etc.

The collapse of 2 banks and FED injected more money in this year had no relation with the sudden pump of Bitcoin price. FED prints new money will make the value of the dollars decreased, but it doesn't mean it will increase Bitcoin price.

The narrative or expectations of investors now are different though, when government injects money to save bank, so as the bank fails, investors opt to other assets to hedge their wealth and bitcoin might be the number 1 logical choice, or maybe gold or maybe stocks.

Or maybe this news as well:

https://decrypt.co/123295/binance-swaps-busd-stablecoin-bitcoin-ethereum-bnb

“Given the changes in stablecoins 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,” Binance CEO Chanpeng Zhao wrote in a tweet early Monday.

[rosefan]

Bitcoin halving is approaching. Also, although the FED is still far from where we want it to be in terms of interest rate and money printing policies, this situation will change. I believe the next bull market will begin this year and BTC will reach its ATH next year.

[rhomelmabini]

Bitcoin halving is approaching. Also, although the FED is still far from where we want it to be in terms of interest rate and money printing policies, this situation will change. I believe the next bull market will begin this year and BTC will reach its ATH next year.

It's still due at q2 2024 so I think that's probably not the reason but overtime that's what we're believing in. I'd say 2024 it may start and then reaching new highs will be at 2025 but yeah lot of more room to grow the next year, so it's not impossible to reach new heights. Not to be overshadowed by that narrative but in the long term it's really profitable if you have patience.

[Mate2237]

There are different things that make bitcoin to pump/increase in price. But the one I know is when more buyers storm the crypto space then the price would increase and when more people sell the price will come down or decrease. From Economics analysis approach, FED injection of dollars to the system has nothing to do with the increase of bitcoin, yes there is a supportive hand to some extent but it is not because of the injection that make the rise of bitcoin. This has been predicted since last year that bitcoin will go up this and it will not be the ATH. The ATH will be in the year 2024 and 2025.

So as for the increased not bitcoin in thus year is not a surprise to me. I was expecting it so I am okay well inform on it.

[panganib999]

While there is no doubt that bitcoin seems to rise amidst the adversity, I don't think the reason why bitcoin is increasing in value is due to money printing. If anything, it only ever lowers the value of the dollar down, not increasing the value of bitcoin.

You can't attribute bitcoin's increase in value to the halving too, coz that's not due until 2024, and frankly put, no one's that giddy to wait for a couple more months when things aren't as appealing in the real world anymore.

Simply put, we don't have a single idea why bitcoin is increasing in value, it could very well be previous SVB consumers and clients injecting what was left of their money onto bitcoin in hopes of recovering from the losses, it could be other things, and we can't stay thankful for bitcoin's increase since we don't know if it's sustainable yet considering how bleak the situation in the outside market is.

[Husires]

I do not think that the money that the Fed pumped reached the Bitcoin platforms. It started less than ten days ago, and it is impossible for all this liquidity to move quickly for Bitcoin, and it is intended for the money of depositors.
I might have some scenarios like:

• Expect the Fed to change its monetary policy and not to raise interest rates at the next meeting.
  
• Touching the resistance barrier several times makes it weaker and thus easy to break.
  
• The lack of trading volumes between 24k and 28k, note that we almost broke the top less than a month ago.

[Zorigi]

of course there must be many factors that cause the price of bitcoin to rise, but of course we just had the old bear market, namely in 2022.
so in my opinion it's only natural that today's bitcoin has increased because people who buy bitcoin in installments must have accumulated more. so in my opinion the cause could be the reason for the increase as you mentioned but what is certain is that there are many other things that cause the price of bitcoin to rise, so it is only natural that today the price of bitcoin will increase, because it has been in a bear market for too long.

and that's all i know.

[thecodebear]

Bitcoin is rising because:

- bear market is just naturally coming to an end as it always does a year-plus after the bull market ends.
- some banks failed this month and bitcoin is the only way to store money without banks
- inflation is coming down plus banks failing makes it likely the Fed will be more cautious on raising interest rates as high as they otherwise might have, and higher interest rates scare investors from investing so this is good for bitcoin
- bitcoin broke through the resistance in the $25,000s which was the bottom of the market resistance, so its much easier for the price to go up now because there is less resistance holding it down (the market had spent a few weeks trying to take down that resistance level)

[serjent05]

Obviously, the sentiment of the market is positive due to the current bad events in the traditional financing system.  Bank system failure make investors lose trust on the traditional financing system making them to look for alternative and that is where Bitcoin comes in.

Although I think that the end of the bear market often happens in the last quarter of the year before the halving, it is possible that the transition of the market will come early this cycle.  But it is also possible that this price trend can be another bull trap just like what happened when BTC touched 24k on its last rally before it plunges to sub $20k.

[romero121]

Various reasons can be framed for the sudden increase in the price of bitcoin. The prime reason for the bullish move is the failure of the Silicon Valley Bank. A huge amount got withdrawn from the bank and the same is the reason for its bankruptcy. Most of the money used could've been invested into cryptocurrency and the same could've boosted the market price cross the resistance barrier $25k. Now the government have involved into the case and the state's federal reserve gonna fund the people and federal reserve could've entered earlier so that this problem could've been overcome earlier.

The price that bounced all the way have begun to decline as it is quite common to experience bull for some reason and take the position from which the real growth movement got a deviation. Possibly the market will undergo correction and thw real market moves will continue.

[eaLiTy]

~
I haven't noticed any significant good news, but it appears like Bitcoin simply started pumping up. But I agree with the OP that if money were actually injected into the economy, the amount of fiat in circulation might have increased. As a result, fiat is also being injected into bitcoin. Hence, to me, this is a viable explanation.

Last week 3 Banks in the US went down, Silvergate Bank on March 8th, Silicon Valley Bank on 10th and Signature Bank on 12th and if you look when the market started rallying it gives a clear idea why the BTCitcoin market started rallying, after all BTCitcoin is created to be an alternative when fiats and banks fails and people are identifying that and moving their assets to BTCitcoin and hence the rally.

[Car22]

The next  bull run is expected to be 2024 . SO it is rally that has been started and BTC price has been risen up day by day.