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03/20 update below. This post was originally published on March 19

BitcoinBTC, ethereum and other major cryptocurrencies have seen a $200 billion boom in the last two weekstriggering a shock bitcoin price price prediction.

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The bitcoin price has come within touching distance of $28,000 per bitcoin, its highest since last summer. The bitcoin price rally has also boosted the ethereum price and other top ten cryptocurrencies BNBBNB, XRPXRP, cardano, dogecoin, polygon, and solana.

Now, after almost 200 U.S. banks were found to be dealing with similar pressures as the collapsed Silicon Valley Bank (SVBVB), the U.S. Federal Reserve is under pressure to ease back on its inflation-busting interest rate hike programsomething that could push the bitcoin price and crypto market even higher.

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"As if they did not have enough with which to contend in the face of fighting inflation on one hand and fending off recession on the other, central banks must now confront the failure of SVB and any wider implications that has for the banking system, given that higher interest rates have played some role in putting the squeeze on that banks customers and then ultimately the bank itself," Russ Mould, investment director at brokerage AJ Bell said in emailed comments.

"We will find out just how perturbed officials areif indeed they are perturbed at all."

03/20 update: Goldman Sachs analyst David Mericle has predicted the Federal Reserve will leave interest rates where they are when the Federal Open Market Committee (FOMC) meets this week. "While policymakers have responded aggressively to shore up the financial system, markets appear to be less than fully convinced that efforts to support small and midsize banks will prove sufficient," Mericle wrote in a note to clients seen by Marketwatch, adding the link between a single quarter-point hike and future inflation is "very tenuous."

The Fed's two day policy meeting starts on Tuesday with the announcement followed by a Fed chair Jerome Powell press conference on Wednesday.

Traders now expect the Fed to hike interest rates by just a quarter of a percentage point next week before rapidly reversing course and cutting rates later this year.

The shock collapse of SVB last week, as well as the closure of crypto-friendly Signature Bank, sparked fears other banks could suffer a similar fate. Economists wrote in a study out this week that 186 banks across the country could be prone to similar risks as SVB. Troubled First Republic Bank was extended a lifeline by almost a dozen of its larger rivals in order to avert its implosion.

The bitcoin price has fallen sharply over the last year as the Fed ramped up interest rates at a historic pace to drive down soaring inflationwiping around $2 trillion from the combined price of ethereum, BNB, XRP, cardano, dogecoin, polygon, solana.

The Fed's response to the SVB-led banking crisis has caused expectations to surge the Fed is poised to reverse course and has already restarted quantitative easingsomething some fear could trigger U.S. dollar hyperinflation and ultimately the collapse of the entire financial system.

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"Concerns stemming from a series of U.S. bank closures have subsided thanks to the Feds aid and now, with their balance sheet expanded about $300 billion in a week, the market is welcoming an effective end to the Feds quantitative tightening," Yuya Hasegawa, crypto market analyst at Tokyo-based Bitbank, wrote in an emailed notepointing to bitcoin's latest rally as potentially signaling the beginning of a new bull market.

"Although yields on treasury bonds have rebounded due to decreasing concerts for the economy, which leaves some room for the Fed to continue hiking rates. However, the reversal in the stock market sentiment has improved risk appetite, and it could boost the price of bitcoin further in the short term."

I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com.Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.

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Goldman Sachs Bets Bitcoin And Crypto Are Braced For An Epic Fed U-Turn After $200 Billion Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon And Solana...