The ongoing US economic meltdown has continued to create a ripple effect on the overall crypto market. On Friday, the global market capitalization is at $1.17 Trillion again after falling short by a few points on Thursday.
Up-and-coming feline meme token Big Eyes Coin and well-reputed Polygon are even seeing prices shooting up. But what is happening? Why are cryptocurrency prices catapulting to great heights once more? And why is the USD Coin down again?
“Central Banks are Again Pumping Billions in Liquidity into the Market.”
The cryptocurrency world has woken up to another great news this week: shooting prices, with Bitcoin dominating the lead (up 7% in the last 24 hours), hitting $26k! To many crypto novices, this may come as a shocker, but this isn’t rocket science for the aficionados.
German cryptocurrency expert Holger Zschaepitz claims that prices are increasing because of liquidity even though there are concerns about a banking contagion. The market is once more receiving billions in liquidity from Central banks.
The sudden shooting of prices in the crypto industry is a result of the $300 billion liquidity from the Federal Reserve. Many are stunned by the entity’s massive cash injection, but this, nevertheless, demonstrates the lengths to which it was prepared to go to contain a banking catastrophe. In part of a Twitter response, economic forecaster and gold expert Peter Schiff stated that this will undo four (4) months’ worth of quantitative tightening — a method of removing liquidity from the economy.
The Central bank liquidity trends influence how the cryptocurrency market performs. This is one of the reasons why the US Dollar and stablecoins, specifically the USD Coin (USDC), are down once more.
Interest Rate Increases are Essential.
At its upcoming monetary policy meeting on March 21 and 22, the US Federal Reserve is expected to adopt a price increase of between 5.50% to 5.75%, according to Citi and Bloomberg. The banking system is already under financial stress, and an increase in interest rates at the Fed’s meeting the following week may make matters worse. It may further reduce the value of the bonds that banks are holding.
Thomas Hoenig, a former FDIC and Fed official who manned the Kansas City Fed during the 2008 financial crisis, asserted that an increase in interest rates is essential if inflation is still looming around. Failure to increase interest rates might bring back the ghosts of the 2008 Global Financial Crisis (GFC).
Polkadot Soar Higher!
Polkadot (MATIC) a well-reputed blockchain platform launched in 2020 leaps by about 6.32% on Friday, with a $467.23 million trading volume and a market cap of $10.47 billion. This information is taken from CoinMarketCap.
Big Eyes Coin Offers As Much as 10K% ROI!
Big Eyes Coin (BIG), the up-and-coming token in the meme space, recently opened its ‘300’ vault pin! It offers 300% extra loot boxes for all its token holders, on top of its initial offering of 5000% ROI for its loot boxes! $BIG investors get triple the loot when they spend over $100 on $BIG tokens or loot boxes. More offers include:
- $100 for three (3) Saver Tins;
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Further $BIG tokens also leave holders with as big as 10,000% ROI!
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