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After a recovery on March 16, the United States equities markets are again down on March 17. Investors remain concerned about the vulnerability of the banks in the U.S. and Europe. A silver lining for cryptocurrency investors is that Bitcoin (BTC) has remained decoupled with the equities markets and has risen to its highest level since Jan. 12.

Galaxy Digital founder and CEO Michael Novogratz said in an interview with CNBC that the US and the globe will face a credit crunch as banks lend less to rebuild capital. He said investors should be long on Bitcoin and crypto because these are the times for which it was created.

Quantitative tightening seems to be giving way to a period of quantitative easing. The banks have already borrowed $150 billion from the Federal Reserve, which is more than the amount borrowed during the 2008 financial crisis.

Analysts pointed out that the Fed has added $300 billion to its balance sheet in a week, second only to the $500 billion pumped after the March 2020 crash. The QE in 2020 triggered a rally in Bitcoin that took it from about $4,000 to $69,000.

Will history repeat itself? Could Bitcoin and altcoins sustain the higher levels? Let’s study the charts of the top-10 cryptocurrencies to find out.

Bitcoin (BTC) hit new nine-month highs on March 17 as the latest events in the growing United States banking crisis boosted crypto markets.

Banking crisis volatility sees $27,000 BTC price

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $27,025 on Bitstamp before consolidating.

At the time of writing, the pair circled $26,500 with volatility ongoing after the Wall Street open.

A catalyst for fresh upside had come in the form of the Federal Reserve’s balance sheet data overnight, this showing almost $300 billion being injected into the economy as part of the banking crisis response.

The event effectively undid months of liquidity removal under the Fed’s quantitative tightening (QT), and commentators were quick to call the restarting of the opposite phenomenon — quantitative easing (QE).

GPT-4, the latest version of artificial intelligence chatbot ChatGPT, believes the events of the last seven days could be bullish for Bitcoin (BTC), Ether (ETH), and Cosmos (ATOM), according to an AI-trading experiment run by Cointelegraph. 

The experiment is aimed at understanding GPT-4’s potential biases towards certain cryptocurrencies, how the events of last week could impact investment decisions, and whether it can adjust strategy to eventually turn a profit.

The experiment began on March 17, instructing the chatbot to allocate $100 to “make as much money as possible in the shortest time.” The prompt had to be written in a way so that GPT would be comfortable giving out trading instructions.

As GPT-4 knowledge and training is current only to September 2021, Cointelegraph fed it with year-end round-ups for 2021 and 2022, along with its Markets News and most read stories over the past seven days to understand how it would invest based on the most recent events.

It noted that the current state of the crypto market has been volatile, with “various factors” influencing prices.