⛽ETH fund inflows push major cryptocurrency upwards
Bitcoin has been posting strong gains today and has climbed above the psychological resistance level of $47,000. Over the past 5 days, BTC has risen by nearly 11%. We can relate this to several global factors. The main driver of the current gains appears to be a large inflow of funds into the Bitcoin ETFs and a renewed increase in risk for US regional banks, which are grappling with a number of potential systemic issues:
- Outflows from Grayscale have slowed sharply and inflows into ETFs have accelerated strongly as US regional banks face systemic challenges.
- Comments made by Powell in a recent interview suggest that the liquidity problem may be affecting more regional banks, which are burdened by losses on commercial real estate loans that are falling in value
- ETFs from the two largest ETF issuers (ETCs) BlackRock and Fidelity have already raised nearly 150,000 BTC
- Altcoins are also gaining amid expectations of ETF acceptance for Ethereum
- Bitcoin initially reacted rather sluggishly to declines in the share price of New York Community Bancorp (NYCB.US), but in the absence of a quick resolution to the situation, fears of an extension of the crisis are growing, and with them Bitcoin
- Investors are mindful of the spring of 2023, when Bitcoin surged nearly 50% during the collapse of Silvergate,Signature, SVB, First Republic and Credit Suisse
- Bitcoin was created after the 2008 banking crisis as an alternative to a centralised, decentralised system for transferring value (blockchain)
Bitcoin is breaking above the $47,000 barrier and theoretically paving the way for further gains towards $49,000. The nearest zone of significant support may now be in the region of $45,000 and $44,000.
Source: xStation
