Bitcoin has significantly experienced a rally due to the recent banking crises that took place in the United States and Europe; however, the prices of other crypto assets have not been able to reflect this movement. In terms of price appreciation, most altcoins have floundered as the largest crypto asset.
Over the past few days, Bitcoin’s cost has jumped up more than 40% to $28,250 on March 22, 2023. On March 10, 2023, the largest cryptocurrency asset was worth roughly $19,950. However, other significant tokens such as Ethereum, BNB, Cardano, and XRP have not been accomplished in the same way.
What people have said about this
Experts have said that bitcoin is always seen as a place to store good value. Now that there is a banking crisis in some of the world’s sturdiest economies and negative macroeconomic sentiment, investors are buying the digital token.
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According to Edul Patel, who is co-founder and chief executive officer of Mudrex, factors like unpredictability in the banking sector, high inflation data, and diminished confidence in a dovish Federal Reserve have amplified demand for Bitcoin, which is currently trading close to its nine-month highs.
Investors prefer Bitcoin over other cryptocurrencies for the reason that it can hedge in contradiction of inflation and bet against the decreasing value of the US dollar. Rather than a general soppiness toward cryptocurrencies that depend heavily on their ecosystem fundamentals, he stated that the growing value of Bitcoin reflects saver trust in Bitcoin as a secure store of price.
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According to information from Coinmarketcap, Bitcoin’s share of the total cryptocurrency market has enlarged to more than 46% as of March 22, 2023. The cryptocurrency market has a total market cap of around $1.18 trillion, while Bitcoin’s market capitalization is around $550 billion.
Over the past few days, Bitcoin has experienced a significant rally. However, the cryptocurrency market as a whole has only grown by 8% to $1.17 trillion. According to the CoinDCX Research Team, this suggests that there are not many significant new investments coming toward the market.
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It stated Instead of putting their money in banks, individuals have shifted from stablecoins to Bitcoin due to the doubt surrounding stablecoins and illiquid assets in the banking sector. The Fed’s FOMC meeting’s upshot will determine the market’s direction.
According to Rajagopal Menon, who is the Vice President of WazirX, Last week, the Fed and its associates efficiently bailed out the depositors of SVB. Bitcoin is also thought to be delicate to changes in the money supply. As a result, many people have claimed that the increase in the size of the Fed’s balance sheet is the primary driver of the rally that took place.
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The Fed had to add $300 billion to its balance sheet as part of this bailout. Given that Bitcoin was technologically advanced in response to the 2008 bank bailouts, the Fed reproduced 300 billion new dollars. In response to the SVB bailout, BTC’s price rise steeply.
Bitcoin- The best crypto assets
According to forecasters, Bitcoin is the most popular and well-known crypto asset among crypto investors. It is fascinating to note that, in contrast to bitcoin, gold is also gaining momentum but slowly, but silver is powerless to keep up.
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New crypto investors typically prefer to take risks with more popular and well-known altcoins than with less well-known coins like Bitcoin. Menon of WazirX specified that the recent price upsurge of Bitcoin and the attention that it has received in the media may also be attracting more number of typical investors and foundations and therefore making it even more important in the market, across the world.
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