WMA: Bitcoin Up by 36% after the Fed Bailed Out Banks for $300B

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This Week’s Summary

  • The crypto market ends the week at a total market capitalization of $1,186 trillion.
  • Bitcoin is up by over 36% after an exhilarating week.
  • Ethereum increased by almost 20% over the past seven days.
  • XRP gained more than 12% in value this week.
  • Almost all altcoins are trading in the green, with virtually no exception.
  • The DeFi sector increased the total value of protocols (TVL) to around $50 billion.

Crypto Trends 13 – 19 March 2023: Market Analysis and Performance

The bulls are back with a bang in the crypto market. This week saw the much-anticipated US bailout of its crashing banks, which immediately rejuvenated all the financial markets. Following the insolvency of several financial organizations, most famously the Silicon Valley Bank, the US banks (under Fed’s umbrella) borrowed $300 billion. While some feared this move would cause interest rates to surge uncontrollably, the current state shows otherwise. As a result, cryptocurrencies and risk-on assets are enjoying a bull run that has been missing for over two years.

This is visible in the green values across the crypto board and in the market capitalization, up by almost $200 billion this week.

Bitcoin soared as soon as the bailout news spread through the markets. The king of cryptocurrencies was trading a little under $22,000 on Monday morning. A steady mid-week surge brought it to its current value of $28,000. More importantly, the climb doesn’t seem to be any close to ending. In fact, BTC is cruising on the back of a 24-hour 3% rise.

Ethereum is also enjoying the recent crypto comeback with a 20% value boost. The second crypto in command was back trading under $1,500 a week ago. Now, it is targeting the $2k level, and many expect it to reach it in the next few days. At the time of writing, ETH was trading at around $1,870.

Altcoins & DeFi

Almost all the altcoins are trading in the green and boasting significant increases. For example, BNB is up by over 21%, XRP by 10%, and Cardano by 12%. Meanwhile, Polygon increased by 9%, Dogecoin by 13%, and Solana by 19%. Elsewhere, Polkadot is up by 9%, Shiba Inu by 8%, Litecoin by 22%, TRON by 11%, and Avalanche by 21%.

The Metaverse sector shares the same sentiment as the rest of the crypto market. For instance, Theta Network is up by 17%, Axie Infinity by 25%, and Decentraland by 23%. Meanwhile, ApeCoin increased by 10%, ICP by almost 15%, and The Sandbox by 31%. The prominent climber of the week is Stacks on the back of a 100% increase.

The DeFi sector added over $7 billion to the total value of locked protocols (TVL), now at nearly $50.12 billion.

Crypto Market Analysis – What’s in the News?

  • HSBC acquired the UK branch of Silicon Valley Bank for only 1 pound.
  • The European regulators criticized the Fed for bailing out the SVB depositors.
  • In February, Argentina’s annual inflation rate surpassed 100% as the South American country is dealing with one of the worst economic crises in history.

Next Week’s Crypto Market Forecast

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The crypto market is an obvious winner of the bank bailout in the US. It seems that, after all, SVB’s crash was a blessing in disguise for many cryptocurrencies. Bitcoin’s 9-month high dominance is another clear example of it. We can only hope that the recent rejuvenation is only the beginning of a spectacular new surge for crypto and other financial markets.

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