The crypto market is up today, and Bitcoin is back to challenging its weekly highs. The reason for this is due to the United States banking crisis. The Federal Reserve has injected $300 billion into the economy to contain the crisis, resulting in a broad rally in the crypto markets.
People are worried that more banks could fail in the coming weeks, and this could spread to Europe. Because of this, many investors are turning to crypto as a safe haven from the turmoil, reminiscent of the Global Financial Crisis (GFC) of 2008.
The Fed's latest cash injections have resulted in reactions heralding the end of quantitative tightening (QT) and a return to quantitative easing (QE). Such a policy was enacted previously by the Fed after the GFC and during the COVID-19 cross-market crash in March 2020. This resulted in the U.S. M2 money supply growing 46%, and Bitcoin's value went from under $4,000 to nearly $70,000.
