Hassan Maishera
TLDR;
- Bitcoin is trading above $24k, up by more than 8% over the last 24 hours.
- The rally comes as Binance converts $1 billion worth of BUSD to Bitcoin and a few other cryptocurrencies.
- Market analysts expect the Federal Reserve not to increase interest rates later this month.
Bitcoin Rallies On The Back Of Binance’s BUSD Conversion
Bitcoin, the world’s leading cryptocurrency, is having an excellent week so far. After falling below the $20k level last week, Bitcoin has added more than 20% to its value since then and is now trading at $24,442 per coin.
The rally comes as buyers dominated the market, pushing Bitcoin to a new weekly high. Binance, the world’s largest cryptocurrency exchange, announced that it would be converting $1 billion of its reserve funds in Binance USD (BUSD) to Bitcoin, Ether and a few other cryptocurrencies.
According to the cryptocurrency exchange, the move was designed to support the cryptocurrency market. Bitcoin broke past the $23k resistance level following the announcement and looks likely to move toward the $25k psychological level in the new term.
In addition to Binance’s Bitcoin purchase, the market had renewed hopes after a report by Goldman Sachs predicted that the Federal Reserve is unlikely to increase interest rates at the Federal Open Market Committee's March 22 meeting.
The recent banking stresses could see the Fed take a more dovish approach to the market in the short term, the analysts at Goldman Sachs added.
Bitcoin is not the only cryptocurrency that has performed well in recent days. Ether has added more than 4% to its value and could cross the $1,500 resistance level soon. Binance’s BNB is also up by 6% in the last 24 hours and is now trading above $300 per coin.
