Bitcoin price surges to above US$27,000 after improvement in liquidity outlook


18th March 2023 – (New York) In a stunning turn of events, the price of Bitcoin skyrocketed by over 10% during the latest trading session, reaching an astounding $27,511.

Ether, the second-largest cryptocurrency by market capitalisation, saw an impressive rise of 3.87%, reaching $1,745.57. This marks a weekly gain of 22.88%, its best performance since August 2021.

Remarkably, these gains occurred even as stocks fell on Friday, as traders grappled with the uncertain future of Credit Suisse. The embattled lender’s ongoing troubles continued to weigh heavily on investors, despite its recent announcement that it will borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank.

According to Dessislava Aubert, an analyst at crypto data provider Kaiko, Bitcoin’s recent surge is closely linked to liquidity. “Bitcoin is highly sensitive to liquidity and the liquidity outlook has improved,” she stated. “Data showed yesterday that the Fed’s assets have risen by roughly $300 billion… While the new BTFP facility is not a direct QE, the Fed is essentially injecting liquidity into the banking system, lending more than the collateral pledged is worth in market terms.”

Aubert went on to explain that China is also playing a role in adding liquidity to the market, through the lowering of its reserve ratio for banks. “So essentially it’s a sentiment-driven move,” she added.