Interface News Reporter | Si LinweiOn the evening of March 13th, market data showed that Bitcoin, the world's largest cryptocurrency by market value, broke through the $24000 mark, reaching a maximum of $24500, with a 24-hour increase of over 18%. The second largest cryptocurrency, Ethereum, quoted over $1650, reaching a maximum of $1700
Interface News Reporter | Si Linwei
On the evening of March 13th, market data showed that Bitcoin, the world's largest cryptocurrency by market value, broke through the $24000 mark, reaching a maximum of $24500, with a 24-hour increase of over 18%. The second largest cryptocurrency, Ethereum, quoted over $1650, reaching a maximum of $1700.
And just last Friday, due to the closure of two American banks, Silicon Valley Bank and Silvergate Bank, which have crypto enterprise customers, Bitcoin fell below $20000, setting its lowest price in nearly seven weeks. But as the Federal Reserve entered the rescue market on Monday, the price of Bitcoin resumed to above $22000.
Benefiting from the strong performance of the two major cores, the cryptocurrency market has also surged, with mainstream currencies experiencing uncertain gains. According to CoinGecko data, the current global cryptocurrency market value has recovered to $1.1 trillion, with a growth rate of 6.83% within 24 hours.
The compliant US dollar stable currency USDC, which was implicated in the closure of Silicon Valley banks, has also begun to restore anchor prices. According to Coinsecko data, USDC has resumed its anchor price of $1, with an increase of approximately 4% in the past 24 hours.
According to ScopeProtocol data monitoring, Circle, the USDC publisher, destroyed over $800 million in USDTs last night, reflecting the beginning of Circle's redemption wave. However, due to the support provided by US regulatory agencies to Silicon Valley bank depositors, Circle is expected to be able to make normal payments.
Joe DiPasquale, CEO of BitBullCapital, a crypto asset management company, stated that the outflow of funds from Circle's USDC stable currency has shifted to Bitcoin, and that Coin An's decision to exchange stable currency from its recovery fund for Bitcoin and Ethereum has also led to price increases.
On Sunday, Zhao Changpeng, the founder of Coin An, announced that he would exchange the $1 billion Coin An Dollar Stable Dollar (BUSD) into Bitcoin, Ethereum, Coin An Coin, and other tokens to support the market, which may have supported the buying of Bitcoin.
On the other hand, the bankruptcy crisis of banks in Silicon Valley continued to ferment. The Federal Reserve failed to save the confidence of banks in other regions by backing depositors' deposits. Regional bank shares were slaughtered again on Monday. Many banks and asset management giant Charles Schwab Financial broke circuit for several times in the session. Among them, the first Gonghe Bank closed down nearly 62%, the largest decline since its listing. The Bank of Alain's West plunged more than 80% in the morning, and Charles Schwab once fell 23%, the largest decline in the session.
European banking stocks also fell sharply. Credit Suisse's stock price hit a new historical low and fell 15% during the session. Credit Suisse's five-year credit default swap contract (CDS) jumped to a record high of 448 basis points, reflecting that investors had never expected Credit Suisse's default risk to be as high as it is now.
The biggest banking crisis in recent years has brought significant uncertainty to the prospects of the Federal Reserve raising interest rates. Goldman Sachs does not expect the Federal Reserve to raise interest rates again in March, and its expectations for a 25 basis point hike in May, June, and July remain unchanged. It is expected that the terminal interest rate will decrease by 25 basis points compared to before to 5.25% or 5.5%.
OIS pricing shows that traders are betting that the Federal Reserve's policy interest rate will peak at around 4.83% at the May meeting, which means there is still about 25 basis points of room for the Fed to raise interest rates compared to the current level. From then on, until the December meeting, there will be a total of 75 basis points of interest rate cuts by the end of this year, equivalent to about three 25 basis points of interest rate cuts each time.
Swap contract traders predict that the probability of the Federal Reserve raising interest rates by 25 basis points next week is less than 60%. The interest rate futures market expects the probability of the Federal Reserve not raising interest rates to rise to over 30% next week. Nomura economists even expect the Federal Reserve to cut interest rates next week.
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