So far Bitcoin continues to show a lack of correlation with the dollar. Normally these assets have an inverse correlation, but it has disappeared over the past month. As Kaiko analysts point out, this is due to the significant growth of the digital asset market.

Also of interest is the situation with the hodgepodge. As of yesterday, 39.65 per cent of all bitcoins in circulation had not moved for at least three years. This is a record figure, which suggests that investors are willing to wait for better rates to sell.

It is important to note that just one day earlier, the corresponding figure was 39.53 percent of all BTC in circulation. Which means the popularity of bitcoin storage and cryptocurrency in general is actively gaining momentum.

What’s next for cryptocurrencies

Bitcoin is trading near the $27,400 line this morning. On a weekly scale, the cryptocurrency is up 35 per cent in value, which is an incredible pace. It is also important to note that this is the best growth result on a seven-day scale among the largest-cap digital assets.

As traders point out, this sort of thing speaks to the "right" bullrun, which is occurring primarily with Bitcoin's pitch. Accordingly, experts expect a gradual flow of capital to other projects with large capitalization, such as Efirium or Solana. Small tokens are the last to rise, and the scale of their leaps usually outstrips that of large projects due to disproportionately smaller market capitalization. In other words, it takes much less money for a small-cap token to change its value than it does for the market giants.

Overall, the situation in the coin market looks like this.

According to Cointelegraph’s sources, the 180-degree reversal in US Federal Reserve policy could well be considered quantitative easing, i.e. injecting money into the financial system and in this case, targeted support for markets amid the banking crisis. Prior to that, the Fed was engaged in quantitative easing by continuously raising the lending rate to fight inflation over the last year. Such policies have made it considerably more difficult to borrow capital for investments and caused markets to plummet.

The US stock market has not reacted much to the news so far, but crypto is already rushing upwards. Last time quantitative easing in 2020 led to a new global bull run for Bitcoin on the back of economic stimulus during the COVID-19 crisis. As such, seasoned cryptocurrency investors believe that history will repeat itself this time around – but now the catalyst for growth will not be the pandemic, but banks.

The Fed’s new policy was also the focus of another article by Arthur Hayes, former CEO of major crypto exchange BitMEX and a popular crypto trader. He stated that he now favours digital assets in terms of investments. Here’s a relevant rejoinder from the expert.

I have basically stopped trading equities. What’s the point? I usually buy, hold and don’t change my positions that often. If I believe what I’m writing, then I’m setting myself up for failure. If there is a short-term trading opportunity where from my perspective I can make a quick profit and then take my profits and buy more Bitcoin, I will do so. Otherwise, I’ll liquidate most of my equity portfolio and move it into crypto.

Prior to that, Hayes was relatively sceptical about crypto. Even a few months before Bitcoin’s bottom formed last year, he claimed that BTC had every chance of falling below $20,000. However, then Arthur went overboard and actively predicted a collapse of Bitcoin to $10,000 given the banks’ actions.

Also worth noting as an important reason for the rise in cryptocurrency popularity was the collapse of banks the day before. It made it clear that even large financial institutions can become insolvent in a matter of days, which means that customers' money on deposit can now hardly be considered as safe. And this is where cryptocurrencies can come to the rescue - decentralised, with predetermined inflation and the inability to increase the supply of coins by a notional 10-20 per cent in one month. In today's environment, this is really relevant.


It looks like the perception of cryptocurrencies among ordinary people is going to change from now on. It's no longer just a modern risky asset class, but a viable option to protect yourself against the actions of governments and bankers. Yes, crypto does change dramatically in value - and sometimes downwards. However, it does not require financial assistance from the government, which would then increase inflation and lower people's standard of living. That's why a close familiarity with coins is especially worth it now.