Bitcoin Skyrockets On Fed’s Bank Rescue Plan
By Laxmikant Khanvilkar
Bitcoin (BTC) and ether (ETH) started the working week at technically oversold levels and ended it at the precipice of overbought levels.
The two largest cryptocurrencies by market capitalization weathered bank failures, inflation concerns and ETH selling pressure to ride higher. Bitcoin was recently selling at about $26,780, up more than 30% over the past seven days, with much of its gains occurring since Monday. Ether has climbed about 21% over the same period.
Both assets made abrupt turns at the technically oversold Relative Strength Index mark of 30 on March 11, and accelerated their move higher following assurances by the Federal Deposit Insurance Commission (FDIC) that Silicon Valley Bank depositors would be made whole.
Next week, investors will be focusing on Wednesday’s Federal Open Market Committee’s (FOMC) interest rate decision, currently favored to result in a 25-basis point increase. Little significant data is likely to change expectations before the announcement. Investors will likely pay special attention to the FOMC’s economic projections, as they will show the reasoning behind the FOMC’s decision.
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