• The banking crisis following Silicon Valley Bank’s collapse is forcing central banks to protect the financial system and markets are pricing in a Fed pivot.
• CryptoQuant analyst Cristian Palusi suggests that the liquidity crises now plaguing commercial banks may be a “long-awaited buy signal” for Bitcoin.
• Gold and Bitcoin have seen an increase in value with gold surging to nearly $2000, while Bitcoin reached another 9-month high of $27,000.
Banking Crisis Leads to Fed Pivot
The banking crisis following SVB’s collapse has the market pricing in lower interest rates far sooner than previously expected. Markets are starting to price in an incoming Fed pivot as bank instability forces central banks to protect the financial system.
Bitcoin Could See Buy Signal
Analysis from CryptoQuant analyst Cristian Palusi suggests that the liquidity crises now plaguing commercial banks may be a “long-awaited buy signal” for Bitcoin. Banks Down, Bitcoin Up In a post published on Thursday, Palusci noted that the implied federal funds’ policy rates have severely shortened their time frame for when they think the central bank will first cut rates again, from Q1 2024 to June 2023. Meanwhile, gold and Bitcoin are on the rise: the precious metal surged to nearly $2000 as of Friday, while its oft-considered digital successor rose to another 9-month high of $27,000.
Coinbase Premium Indicates Buy Pressure
“One of the elements that represented a clear buy signal emerged immediately after the bankruptcy and related bailout of the Silicon Valley Bank: the Coinbase premium,” wrote Palusci. Coinbase (COIN) has risen over 37% over the last 5 days, and is known to be tightly correlated with the crypto asset market that it enables trades for. “Initially the spread could have had a double interpretation following