{"id":11806,"date":"2023-05-04T09:45:36","date_gmt":"2023-05-04T09:45:36","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=11806"},"modified":"2023-05-04T09:45:36","modified_gmt":"2023-05-04T09:45:36","slug":"bitcoin-eyes-liquidity-above-30k-as-gold-hits-new-all-time-high","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=11806","title":{"rendered":"Bitcoin eyes liquidity above $30K as gold hits new all-time high"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bitcoin (BTC) reclaimed $29,000 overnight into May 4 as the United States banking crisis risked spawning new victims.<\/p>\n<p><em>BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/p>\n<h2>Gold, Bitcoin benefit from U.S. banking mayhem<\/h2>\n<p>Data from Cointelegraph Markets Pro and TradingView tracked a swift mood change for BTC\/USD, which hit $29,242 on Bitstamp.<\/p>\n<p>The pair had sunk to daily lows at the previous day\u2019s Wall Street open as markets awaited the Federal Reserve\u2019s decision on interest rates. <\/p>\n<p>At the same time, more U.S. regional bank stocks were suffering, with the trend remaining as the Fed confirmed its much-anticipated 0.25% hike.<\/p>\n<p>One lender, PacWest Bancorp,\u00a0reportedly announced that it was considering a buyout, pressuring the regional bank sector even further while boosting havens, including Bitcoin. <\/p>\n<p>Gold even hit new all-time highs as market commentators criticized the Fed\u2019s approach and predicted the end of rate hikes altogether.<\/p>\n<p><em>XAU\/USD 1-month candle chart. Source: TradingView<\/em><\/p>\n<p>\u201cThe biggest joke is the fact that Jerome Powell says that the banking system has improved and is healthy, sound and resilient. It\u2019s the weakest it has ever been and another few banks have been falling apart after market,\u201d Micha\u00ebl van de Poppe, founder and CEO of trading firm Eight, reacted.<\/p>\n<p>\u201cThis was the last hike.\u201d<\/p>\n<p>Van de Poppe referenced comments on the regional banking sector by Fed Chair Jerome Powell, which accompanied the rate decision.<\/p>\n<p>\u201cConditions in that sector have broadly improved since early March, and the U.S banking system is sound and resilient,\u201d he said in a statement prior to a subsequent press conference. <\/p>\n<p>\u201cWe will continue to monitor conditions in this sector. We are committed to learning the right lessons from this episode and will work to prevent events like these from happening again.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">US Regional Bank Stocks After Hours: <\/p>\n<p>1. PacWest, $PACW: -60%<\/p>\n<p>2. Western Alliance, $WAL: -30%<\/p>\n<p>3. Metropolitan Bank, $MCB: -20%<\/p>\n<p>4. Valley National, $VLY: -15%<\/p>\n<p>5. HomeStreet, $HMST: -11%<\/p>\n<p>6. Zions Bank, $ZION: -10%<\/p>\n<p>7. KeyCorp, $KEY: -8%<\/p>\n<p>8. Citizens Financial, $CFG: -5%\u2026<\/p>\n<p>\u2014 The Kobeissi Letter (@KobeissiLetter) May 3, 2023<\/p>\n<p>Others were far from convinced, however. <\/p>\n<p>Arthur Hayes, the former CEO of derivatives exchange BitMEX, revealed that he was already hunting for failing regional banks. Markets, he argued, could depend on the next move by either Powell or Treasury Secretary Janet Yellen.<\/p>\n<p>\u201cYou never know what is the trigger that causes Yellen or Powell to cave and bail everyone out. It\u2019s all politics now and politics is more about power than rational decisions,\u201d part of a tweet read.<\/p>\n<p>Financial commentator Tedtalksmacro additionally noted that the Fed funds rate was now at its members\u2019 own expected peak.<\/p>\n<p lang=\"en\" dir=\"ltr\">Back in March, the majority of FOMC participants said that the terminal rate for this tightening cycle would be 5-5.25% \u2014&gt; that\u2019s where we are now. pic.twitter.com\/50d4EMG7Fg<\/p>\n<p>\u2014 tedtalksmacro (@tedtalksmacro) May 3, 2023<\/p>\n<h2>An \u201cimportant signal\u201d<\/h2>\n<p>Turning to Bitcoin: reclaiming $29,000 provided a much-needed bullish counterpoint to recent price action.<\/p>\n<p><strong><em>Related:\u00a0BTC price may need a $24.4K dip as Bitcoin speculators stay in profit<\/em><\/strong><\/p>\n<p>Eyeing changes in the Binance order book, monitoring resource Material Indicators showed that whale buying power had gained the upper hand through the news events.<\/p>\n<p>\u201cAfter clearing out most of liquidity in the range before the FOMC FED rate hike announcement, BTC whales had no problem eating through the remaining liquidity and reclaimed $29k,\u201d it summarized.<\/p>\n<p><em>BTC\/USD order book data (Binance). Source: Material Indicators\/ Twitter<\/em><\/p>\n<p>Market participants thus hoped that further liquidity squeezes could come next, fueling a trip above the $30,000 barrier.<\/p>\n<p lang=\"en\" dir=\"ltr\">If #bitcoin keeps trending up there is a lot of liquidity between $31k &#8211; $35k.https:\/\/t.co\/sqKr3pvbYP pic.twitter.com\/i3DTDKcvu6<\/p>\n<p>\u2014 Philip Swift (@PositiveCrypto) May 4, 2023<\/p>\n<p>\u201cEven though Gold is attacking ATHs, Bitcoin continues to outperform it,\u201c Checkmate, lead on-chain analyst at Glassnode, noted, having called gold\u2019s new highs an \u201cimportant signal.\u201c<\/p>\n<p>A tweet including Glassnode data showed the increase in BTC\/XAU since the start of 2020.<\/p>\n<p lang=\"en\" dir=\"ltr\">Even though Gold is attacking ATHs, #Bitcoin continues to outperform it.<\/p>\n<p>Shows periods where BTC was the superior asset to hold over that 30-day period.<\/p>\n<p>On 1-Jan 2020, 1 $BTC = 4.9 oz Gold<br \/>Today, 1 $BTC = 14.2 oz Gold<\/p>\n<p>&gt;https:\/\/t.co\/RLd2sM90xh https:\/\/t.co\/eYJNRmI3Rh pic.twitter.com\/3YaQi9VjU8<\/p>\n<p>\u2014 _Check\u0271ate \u26a1\u2622\ufe0f\ufe0f (@_Checkmatey_) May 3, 2023<\/p>\n<p><em><strong>Magazine: <\/strong><strong>Unstablecoins: Depegging, bank runs and other risks loom<\/strong><\/em><\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-eyes-liquidity-above-30k-as-gold-hits-new-all-time-high\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) reclaimed $29,000 overnight into May 4 as the United States banking crisis risked spawning new victims. BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView Gold, Bitcoin benefit from U.S. banking mayhem Data from Cointelegraph Markets Pro and TradingView tracked a swift mood change for BTC\/USD, which hit $29,242 on Bitstamp. The pair had sunk [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11807,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-11806","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11806"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11806\/revisions"}],"predecessor-version":[{"id":11808,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11806\/revisions\/11808"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/11807"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}