What is the reason for the increase in the price of Bitcoin?
The Federal Reserve is adding another $300 billion to their economy. This is basically one of the main reasons behind the increase in the price of Bitcoin. This news has affected the prices of stocks and cryptocurrencies everywhere. In this regard, market researcher Holzer said, the central bank has added a lot of dollars to the economy, so the market is seeing so much growth all around.
The failure of Silicon Valley Bank and Signature Bank was the reason why the Federal Reserve decided to inject dollars into the economy on an emergency basis. Banks borrowed about $150 billion from the Federal Reserve, the highest since the 2008 global recession.
Adding dollars to the economy is not new, nor is it the first time that banks lend dollars at low interest rates. During Corona in 2020 the Federal Reserve added dollars to their economy after which we saw Bitcoin rise from less than $4000 to almost $7000. Many believe that the US will add more dollars to its economy in the coming days, which could push the price of Bitcoin to new highs.
The former CEO of Bitmex said that the more currencies are added to the global economy, the more likely the price of Bitcoin will rise. But the central banks of China and Japan are doing exactly the same thing as the Federal Reserve.
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