Bitcoin's Price Rally Driven by Americans' Safe Haven Bid: Matrixport
The recent bank failures in the U.S. have exposed the fractional reserve banking system’s core limitations and strengthened the case for investing in bitcoin (BTC).
Analysis by crypto services provider Matrixport shows that American buyers are leading the safe haven bid for the cryptocurrency. Bitcoin has rallied by over 40% in ten days, reaching a nine-month high above $28,000, CoinDesk data show.
"Since the dip on March 10, Bitcoin has rallied by +44%. +31% of the rally was driven during the U.S. trading hours, and an indicator that Americans are buying bitcoins with both hands," Markus Thielen, head of research and strategy, said in a note to clients, adding that the stress in the banking sector is not over.
Bitcoin is available to trade 24/7 worldwide. However, price action varies through each 24-hour cycle depending on the news flow and macroeconomic data releases.
Of late, the news flow has been dominated by banking sector issues in the U.S. and the resulting repricing of interest rate expectations lower. That explains bitcoin's positive performance during U.S. trading hours.
American hours have been a major source of bullish pressure since the beginning of the year, according to Matrixport.
"Bitcoin (BTC) is up +66% year-to-date and during U.S. trading hours, Bitcoin rallied 47%, while the cryptocurrency only rallied by +16% during trading hours in Asia. Bitcoin has barely broken a sweat during European trading hours – just +3%," Thielen said.