The U.S. Federal Reserve balance sheet rises by $300 billion as the central bank starts money printing for rescuing cash-strapped banks since the collapse of Silicon Valley Bank and Signature Bank. Bitcoin and Ethereum prices have soared higher as a result, with broader crypto market sentiment turning bullish.
US Banks borrowed a combined $164.8 billion from the U.S. Federal Reserve. Borrowing at the Fed’s discount window rose from $4.58 billion in the previous week to $152.9 billion as of March 15. The Fed emergency facility will help banks meet short-term funding needs. The prior all-time high was $111 billion during the 2008 financial crisis.
Moreover, the Federal Reserve lent an additional $11.9 billion to U.S. banks under the new emergency Bank Term Funding Program to stop bank runs after the failure of Silicon Valley Bank. In addition, the federal regulators or agencies were provided $142.8 billion to manage the two banks.
Cameron Winklevoss, co-founder of crypto exchange Gemini, said he is more bullish on Bitcoin as the U.S. Federal Reserve balance sheet rises by $300 billion.
The Fed just gave everyone $300 billion more reasons to buy bitcoin. pic.twitter.com/LnIjZtHRdb
— Cameron Winklevoss (@cameron) March 17, 2023
Meanwhile, BitMEX co-founder Arthur Hayes revealed that U.S. banks are in a deeper crisis. Banks are $2.2 trillion underwater on their bond portfolios, worsening risks of US debt default and recession. However, he asserts that if anyone can trade this correctly, they can make up for a very profitable crypto bull market.
“The banking system is so f-ed. They are sitting on $2.2 trillion of bond losses. Long Live #banktermfundingprogram the largest bank bailout in history!”
Bitcoin and Ethereum Will See Massive Price Rally
Bitcoin (BTC) price jumped 6% in the last 24 hours and 30% in a week, with the price currently trading at $25,847. The 24-hour low and high are $24,431 and $25,943, respectively. However, the trading volume is yet to increase, indicating traders still anticipating an entry.
CoinGape earlier reported that BTC price will move again to $25K and hold above 200-WMA at $25.3K for a massive upside move. On-chain data and analysts suggested possibilities of a move to $30K.
Meanwhile, Ethereum price is also witnessing a massive upside move due to rising Coinbase premium and bullish sentiment in the broader crypto market. ETH price is trading at $1,710, up 4% in the last 24 hours. Ethereum developers have set the Shanghai upgrade for April 12.
Also Read: Bitcoin (BTC) Price Up 6% Following US Equities, Will Rally Continue This Weekend?
The post Breaking: US Fed Prints $300 Billion, Bitcoin Price And Ethereum To Rally appeared first on CoinGape.
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