• Bitcoin (BTC/USD) is trading at 27,908, up by 2.50% in the past 24 hours.
• The global banking sector faced significant pressure due to a crisis that threatens the industry.
• The US Federal Reserve has decided to raise interest rates, causing the US Dollar Index to increase and capping BTC/USD.
Global Banking Crisis Impact on BTC
The global banking sector is facing a financial crisis that has threatened its stability. This prompted the Swiss government to arrange a $3.2 billion transaction between UBS and Credit Suisse in order to stabilize their situation. Several central banks, including the US Federal Reserve, Bank of England and European Central Bank have taken coordinated action to boost liquidity and make it easier for people to access US dollar liquidity during times of crisis.
Despite this turmoil, Bitcoin has performed exceptionally well with its price surging as investors consider bank concerns. As a result, Bitcoin briefly reached $28,000 for the first time in nine months on Monday before dropping slightly when the Federal Reserve announced their interest rate decision.
Impact of Raised Interest Rates
The Fed’s decision to raise interest rates resulted in an increase in the value of USD which caused BTC/USD to cap at its current level around $27500. According to CME Group experts there is 73.8% probability of a 25 basis points interest rate increase while there is only 26.2% possibility that they will keep rates due to concerns about bank viability.
If this bullish trend continues then Bitcoin may climb towards $29250 or even $30700 however if support levels at $26700 or $25200 are broken then next support level would be at 23150 for BTC/USD pair .
Investors are currently watching closely as Bitcoin continues performing well despite banking crises and increased interest rates from US Fed and other central banks across Europe and UK . With potential rally ahead ,it can be expected that BTC/USD will continue moving upwards if bulls hold onto current support levels .