Last week, the balance sheet of the U.S. Federal Reserve increased by over $100 billion, bringing the total to $400 billion. Since the failure of Silvergate, Silicon Valley Bank, and Signature Bank, the central bank has continued to issue more currency in an effort to save cash-strapped banks. As a result, the values of Bitcoin and Ethereum have skyrocketed, pushing the cryptocurrency fear and greed index up to 61.
A total of $163.9 billion was borrowed by US banks from the US. compared to $164.8 billion the previous week at the Federal Reserve. Bank borrowing costs have increased as a result of the Fed raising interest rates by an additional 25 basis points to 4.75%–5% and Treasury Secretary Janet Yellen stating that there will be no universal guarantee for all bank accounts.
Elon Musk, the CEO of Tesla, Bill Ackman, the former CTO of Coinbase, Balaji Srinivasan, and Cathie Wood, the CEO of Ark Invest, all expressed their disapproval of the United States. Federal Reserve rate increases in the midst of the banking crisis.
Ethereum Price to Reach $2000 and Bitcoin Price to Reach $35,000?
Around 2% growth has been seen in the last day in the price of bitcoin, which is currently trading around $28,100. $27,359 is the 24-hour low, and $28,729 is the 24-hour high. In the past day, the trading volume has declined while the price of bitcoin has risen.
Coinbase Premium Index is declining, whereas Korea Premium Index is rising, according to on-chain data and sentiment analysis. High premium values show that American and Korean investors are under intense pressure to acquire. The current environment, however, points to a more balanced price momentum.
In addition, 4 on-chain metrics point to a possible correction in the price of bitcoin that would allow for more upward movement in the days to come. According to analysts, Bitcoin might reach $35,000 in light of the banking crisis.
In the meantime, the price of Ethereum is also moving upward, climbing 3% in the previous day amid bullish mood. At a 24-hour high of $1,853, the price of ETH is currently $1,710. Because to high gas prices and the Shanghai upgrade scheduled for April 12, the price of Ethereum will fluctuate.