The total value of the cryptocurrency market surged by 26% in a week, reaching $1.16 trillion on March 17. Bitcoin (BTC) saw the most significant gain among the top 20 digital coins, rising by 31.5%. Some alternative coins also experienced gains of over 50% during the same period.
The increase in crypto prices coincided with the United States Federal Reserve’s emergency injection of $300 billion into banks. Nearly half of this amount went to failing financial institutions such as Silicon Valley Bank and Signature Bank to pay uninsured depositors. The remaining $153 billion was borrowed through a program known as the “discount window,” allowing banks to borrow funds for up to 90 days.
While these measures were intended to stabilize the banking sector, billionaire investor Bill Ackman warned that providing additional funding to institutions like the Federal Deposit Insurance Corporation and utilizing Fed resources for credit facilitation could create a false sense of security.
Billionaire Warren Buffett Faces Losses
As the banking crisis deepened, Warren Buffett, the co-founder and major shareholder of Berkshire Hathaway, a $650 billion conglomerate, witnessed a decline in his investments. Berkshire Hathaway, which holds significant Bank of America shares that dropped by 15.5% this year, incurred a loss of $5.2 billion.
Buffett, a well-known critic of cryptocurrencies, particularly Bitcoin, has persistently expressed his lack of interest in digital assets. Despite his reservations, Bitcoin’s value surged by 31.5% in the six months leading up to March 17, outperforming Berkshire Hathaway’s stock, which increased by 5.8%.
Market Cap Reaches $1 Trillion Again
Examining the performance of the top 80 cryptocurrencies by market capitalization reveals how the market’s resurgence above the $1 trillion mark has impacted altcoin investors.
Notable gains include Conflux’s CFX with a 97.6% increase after KuCoin Ventures announced a $10 million investment in CNHC, a stablecoin issuer available on Ethereum and Conflux networks. Stacks’ STX surged by 75.7% ahead of its network upgrade introducing Stacks 2.1. Immutable X’s IMX rose by 71.7% following the anticipation of a significant partnership announcement.
Options Traders Signal Confidence
Monitoring options trading activity can offer insights into market sentiment. A higher volume of call (buy) options compared to put (sell) options indicates bullish sentiment. Conversely, more put options suggest a bearish outlook.
Recent data reveals an increase in neutral-to-bullish call options since March 12, highlighting growing risk appetite among derivatives traders. The preference for call options peaked on March 17 with a 3:1 ratio over protective put options. Currently, a stable 2:1 ratio favors call options, underlining the confidence of professional investors post the $1.16 trillion market capitalization level rejection.
The data points towards strong support around $26,000 for Bitcoin, positioning bulls favorably for a continued rally.
The opinions expressed in this article are solely those of the author and do not necessarily reflect the views of Cointelegraph.
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