Today, the crypto market has surged as a result of the United States banking crisis and the Federal Reserve’s injection of $300 billion into the economy. Bitcoin, Ether, and Binance Coin have all experienced a significant increase in value in the past 24 hours.
This upward trend in the crypto market can be seen as a response to the current turmoil in the banking system and the fear of a possible contagion spreading to Europe. As a result, some investors view crypto as a safe haven from the market’s instability. The Federal Reserve’s recent move is being compared to quantitative easing (QE), which was implemented during the Global Financial Crisis of 2008 and the COVID-19 cross-market crash in March 2020.
The injection of liquidity is expected to end quantitative tightening (QT), a policy implemented by the Fed to remove liquidity from the economy. The previous implementation of QE in 2020 saw Bitcoin’s value rise from under $4,000 to nearly $70,000. This year, the market is eager to see how Bitcoin will respond.
