Banking Woes Help BTC, Ether Stay Positive
By Laxmikant Khanvilkar
Leading virtual digital assets or VDAs emerged from the early lows, after the Federal Reserve announced much anticipated quarter of a percent increase in interest rate, as looming concerns over the U.S. banking sector continued to drive investors to crypto haven.
Analysts have pointed to the ongoing banking crisis in the U.S. as another driver of crypto prices that counterbalances the Fed’s ongoing interest rate hikes.
Bitcoin, Ether and others were seen making slow and steady up move following the Fed announcement. Initially, bitcoin was down 1% after the rate hike, but it has since recovered by 1.89% to $29,067. Ether, for its part, is up 2.18% to $1,903.
In April, J.P Morgan said in a report that the current banking crisis is a “vindication for the crypto ecosystem.” The analysts have pointed that the crisis “exposed the weaknesses of the traditional financial system given bank’s maturity mismatch is susceptible to bank runs.”
Investors will eye Friday’s U.S. employment numbers, but the prospect of another bank failure before that is expected to drive the price of crypto higher, analysts said.
The global crypto market cap rose 1.42% to $1.20 tn over the last 24-hours. The total crypto market volume grew 19.77% to $42.12 bn. Of this, the total volume in DeFi is currently at $3.37 bn, or 8.00% of the total crypto market volume. The stablecoins volume is now $38.73 bn, which is 91.93% of the total crypto market volume. Bitcoin’s dominance is currently 47.05%, an increase of 0.10% over the day.
IC index, which tracks performance of the top coins, is currently sitting at 39,290 level, up 1.11%.
Elsewhere, the MadLads NFT collection managed to “break the internet” in April with its sought-after JPEGs on the blockchain, yet Solana’s weekly NFT volume is in the red, compared to Ethereum, which remains well in the green.
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