With The Ideal Macroenvironment, The Price Of Bitcoin Is Expected To Increase

The macroeconomic conditions for a significant price rally in Bitcoin may be ideal as the banking crisis spreads from the United States to Europe. The macro background has never been better, stated infamous trader Andrew Kang in a tweet.

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In view of the global financial system's instability and the slowdown in the economy, Kang points out the necessity for the Fed to scale back on how aggressively it raises interest rates. Therefore, low sales and high cost ratios make equities unattractive.

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Bonds also have a subpar yield and R/R profile, in Kang's opinion. The value of the US dollar, the euro, and other fiat currencies is likely to decrease over time. It's "an outstanding set-up to induce flows from TradFi investors," according to Kang.

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Liquidity Of $2 Trillion And Credit Suisse

The trader's tweet was sent in the wake of J.P. Morgan anticipates that the emergency lending program of the Federal Reserve (Fed) will provide $2 trillion in liquidity. According to experts at the large bank led by Nikolaos Panigirtzoglou, this will reverse the Fed's monetary tightening strategy.

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The maximize the utilization of the facility is close to $2 trillion, which is equal to the nominal value of securities held by US banks outside of the five largest banks, according to a client note on Wednesday that was obtained by Trade Algo. However, it is unlikely that the largest banks would participate in the program.

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The struggling Credit Suisse is in compliance with the capital and liquidity standards placed on systemically significant banks, according to a statement on market uncertainty published in Europe by the Swiss National Bank and the Financial Market Supervisory Authority (FINMA). The Swiss National Bank will offer Credit Suisse liquidity if required.

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Following the bank's announcement that it will loan up to $54 billion from Swiss National Bank, shares of Credit Suisse increased by more than 40% at the start of trading.

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A Rebound In The Price Of Bitcoin?

Analyst "52kskew" claims that uncertainty may have contributed to the recent decline in capital markets, despite an impending Fed turn. According to the expert, "Something is not quite right with stock markets, [...] shift in market tone is clearly apparent in terms of macro/traditional markets," adding:

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Looks more like a rush to exit and increased volatility, which for obvious reasons improves cash reserves more so than market exposure. This type of positioning change's time horizon differs from actual market impact, but it's always before banking system pivots & worldwide crises.

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The spot order book on Binance also suggests that a significant Bitcoin increase may be on the horizon. This demonstrates a glaring excess in the $22,500–24,000 area. Perhaps Binance's liquidated Industry Fund is being used to purchase in this price range?

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The situation needs to be watched even though the heatmap does not necessarily imply that all requests are really filled. The analyst did, however, issue the following caution: "Movements [are] becoming more evident here as purchase orders are being put beneath price to push prices upward. This frequently draws perp purchasers to fill spot sell orders above," and he or she submitted the graph below.

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Today is a significant day for the market, as expert Michal van de Poppe noted, as the US unemployment numbers will be made public. Traders need to be aware of that. The biggest increase since October was reported last week, and van der Poppe questioned if the trend would continue, raising the possibility of higher unemployment figures.

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At the time of publication, Bitcoin was trading at $24,937, attempting once more to overcome significant resistance at $25,200.