Bitcoin surges above $28,000 in full blown mega rally while Ether, Cardano and XRP see super bullish rally ⋆ ZyCrypto
Bitcoin’s price surged on Sunday, reaching nearly $28,000 on various crypto exchanges after breaking the key psychological level of $27,500 earlier in the day.
At press time, the pioneer cryptocurrency is trading at $28,080, up around 8% over the past day. Ether was a close second, up over 5% to trade at $1,813 at press time. Interestingly, BTC and Ether are up 60% and 45% year-to-date, respectively, and have recovered from all losses since the start of Q4 2022.
Other cryptocurrencies also benefited from the bullish move, with XRP, BNB, and Cardano all gaining over 5% over the same period. The massive surge sparked over $164 million worth of liquidations in the past 24 hours, with over 45,000 short traders caught in the crosshairs, according to data from Coinglass.
The broad rally in crypto markets is taking place amid macroeconomic headwinds that have directly impacted the sector. The combined implosion of Silicon Valley Bank (SVB) and Signature Bank last week caused cryptocurrencies to fall sharply, with calls for de-banking of crypto-related firms mounting from various regulators.
However, intervention by the US Treasury Department and the FDIC to ensure all depositors at the two cash-plagued banks were recovered stabilized markets, with major crypto assets rallied.
After the recent banking crisis, the Fed has started pumping up its balance sheet for the first time since raising interest rates. On March 15, the Fed committed $297 billion in emergency funds to prevent further contagion in the banking sector. This appears to have sparked a massive shift into crypto as more investors see the sector as a haven to avert a scenario akin to the 2008 global financial crisis.
“Four major banks are bankrupt. At first it was still said that we would not bail out the banks. And then they were saved again, like in 2008/2009. Therefore, many people today are looking for a safe haven for their wealth. And that’s Bitcoin and the altcoins,” tweeted market analyst Andreas Mueller.
Meanwhile, the continued strength of the crypto market has increased the chances of a recovery rally, according to various investors. Checkmate, the lead chain analyst at Glassnode, stated that he expects Bitcoin to be a spot-drive market for some time, suggesting that given “the volume of leverage and even the casino -Venues we flushed out last year could climb higher.”
“Should we break out of this 2015-style low, we could very well re-enter a spot-driven market similar to the 2016+ era,” he wrote.
According to Michaël van de Poppe, CEO and founder of crypto trading company Eight Global, Bitcoin needs to sustain above $26,000 to move higher. However, in a tweet today, the expert emphasized that “this push must be made in the coming hours”; otherwise, bearish divergences could trigger a potential reversal.