As the world grapples with a banking crisis on the brink of chaos, the Federal Reserve (Fed) has taken drastic measures to pump liquidity into the market. The initiative has led to an unexpected response from the crypto market, particularly Bitcoin.
Amidst rising interest rates and a string of bank bailouts, the Fed’s balancing act between tightening and loosening monetary policy has left many investors questioning the safety of their assets.
The Banking Crisis Goes Global
In the United States, multiple banks, including Silvergate, Silicon Valley Bank, Signature Bank, and First Republic Bank, have come under tremendous stress, requiring government or private market intervention. But the crisis has not been limited to the US.
European banks such as Credit Suisse and Deutsche Bank also struggle to stay afloat.
