Bitcoin Jumps To Near Highest Level Since June 2022; Ether Up 3%
Bitcoin remains at a big distance from its all-time high of $69,000 from November 2021.
Bitcoin has jumped nearly 55 per cent so far this year and is near its highest level since June 2022
Amid expectations that the US Fed is likely to cut interest rates later this year to boost the banking sector, the largest cryptocurrency Bitcoin has risen about 4.9 per cent on Friday to trade about $25,610. Ether also gained about 3 per cent.
According to a Bloomberg report, Bitcoin has jumped nearly 55 per cent so far this year and is near its highest level since June 2022. However, it remains at a big distance from its all-time high of $69,000 from November 2021.
“Any sign of interest-rate cuts should push funds to riskier assets, which is likely to be enough to bring more institutional funds into the crypto market, regardless of whether macro traders understand or believe in the longer-term Bitcoin investment thesis,” wrote Noelle Acheson, author of the ‘Crypto Is Macro Now’ newsletter, according to the report.
The global banking system, especially US, is facing a serious problem, with two banks, Silicon Valley Bank and Signature Bank, already collapsing. While SVB collapsed last week, Signature Bank ran on Sunday. Now, US-based First Republic Bank and Swiss lender Credit Suisse are also struggling.
First Republic Bank’s shares have tumbled more than 70 per cent in the past five trading sessions. Rating agencies S&P and Fitch have also cited risks in First Republic Bank’s funding and liquidity.
In the past year, the US Federal Reserve has hiked interest rates aggressively in order to control inflation after two years of the pandemic. The Fed was again expected to hike rates again in its upcoming March policy review, but analysts are not sure about such a possibility anymore amid the banking sector turmoil since last week.
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