Home| Technology| About| Customer Support| Leave a Review| Request Demo| Login
Gallery inside!

Bitcoin Overcomes Issues In The Banking Sector To Post One Of Its Largest Weekly Gains.

March 17, 2023
minute read

Bitcoin is on track for one of its largest weekly rises in recent memory, supported by bets on future interest rate reductions as the token weathers the financial sector's turbulence.

Since the start of Monday, the biggest digital asset has increased by almost 25%. Only ten times in the previous five years did it experience a weekly jump of at least that much, according to statistics gathered by Trade Algo. Smaller coins are also rising, including Ether and Dogecoin.

Expectations of an ending to the tight monetary policy that decimated cryptocurrencies in 2022 are being strengthened by the failure of three regional US bankers and tremors at Credit Suisse Group AG. The unrest has also revived assertions made by some of Bitcoin's most passionate supporters that the token represents an alternative to fiat currency.

The current turmoil in the US banking industry "reinforces Bitcoin's twin position as a hedge against conventional banking and a legitimate risk asset," said Kunal Goel, a research associate at digital asset analytics business Messari. This turmoil may result in a more relaxed Federal Reserve stance.

As of 7:51 a.m., Bitcoin was trading at roughly $26,880, up as high as 8.8% on the day. New York, where. Ether, which came in second, climbed about 6%. When efforts to contain the upheaval in the banking sector gained traction, stocks rose earlier in Asia as well.

The Fed's benchmark interest rate is expected to rise in May to combat high inflation, then be reduced by around 70 basis points this year to encourage economic growth.

Noelle Acheson, the creator of the "Crypto Is Macro Now" newsletter, stated that "any sign of investment cuts must push monies to risk investments, which is probable to be sufficient to bring more organisational funds into the crypto market." This is true whether or not macro traders comprehend or agree with the longer-term Bitcoin investing strategy.

A harsh regulatory crackdown in the US has been imposed on the digital asset industry as a result of the failure of the FTX cryptocurrency exchange. The effects of a brief de-pegging in USD Coin, or USDC, over the weekend are also becoming apparent in the cryptocurrency markets. The second-largest virtual currency, a kind of token that is meant to have a fixed $1 value, is USDC.

The US Securities & Exchange Commission is reiterating its claim that the majority of digital assets are securities, which calls for better investor protection and might make tokens more difficult to sell. The majority of US regulators concur that Bitcoin is not a security, nevertheless.

Dominance Of Bitcoin

According to Markus Thielen, the research director at Matrixport, the regulatory split is benefitting Bitcoin, while uncertainty around stablecoins has caused some investors to go to the biggest digital asset.

According to data from Trade Algo, Bitcoin currently makes up 43% of the value of the whole crypto market, which is the largest percentage since June 2022.

The token has increased by almost 63% so far this year and is just shy of reaching its highest point since June 2022. But, it is still far below the record low of roughly $69,000 set in November 2021.

Valentyna Semerenko
Eric Ng
John Liu
Editorial Board
Bryan Curtis
Adan Harris
Managing Editor
Cathy Hills
Associate Editor

Subscribe to our newsletter!

As a leading independent research provider, TradeAlgo keeps you connected from anywhere.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Related posts.