Bitcoin jumps to highest since June as rally gathers pace

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Bit­coin hit a nine-month high on Tues­day, tak­ing gains past 30% in four days as it shrugged off chaos in glob­al mar­kets after last week’s col­lapse of Sil­i­con Val­ley Bank and rode expec­ta­tions that US inter­est rates won’t rise so fast.

Bit­coin jumped as much as 9.6% to $26,533, its high­est since June 2022, in its fourth straight days of gains.

Major cryp­tocur­ren­cies have been buoyed in recent days by US author­i­ties announc­ing plans to lim­it the fall­out from the col­lapse of Sil­i­con Val­ley Bank (SVB).

US author­i­ties’ action helped sta­bilise the major USDC sta­ble­coin, whose issuer Cir­cle had deposits of $3.3 bil­lion at SVB. The steady­ing of USDC, the sec­ond-biggest sta­ble­coin and a key cog in dig­i­tal token trad­ing, was seen as pos­i­tive for the cryp­to sec­tor as a whole.

Bit­coin, the largest cryp­tocur­ren­cy, has tak­en in its stride the col­laps­es of SVB and Sig­na­ture Bank over the week­end, and Sil­ver­gate Bank ear­li­er this month, all key bank­ing part­ners for a num­ber of cryp­to firms.

Help­ing the asset on Tues­day, ana­lysts said, was US con­sumer price data that showed infla­tion still ris­ing, but at a slow­er pace than the pre­vi­ous month. The wide­ly antic­i­pat­ed read­ing may lead the Fed­er­al Reserve to slow or even pause hik­ing inter­est rates next week.

“CPI data being in line with expec­ta­tions has been very sup­port­ive for inter­est rate sen­si­tive cryp­to assets such as bit­coin,” said James But­ter­fill, head of research at dig­i­tal asset man­ag­er CoinShares.

Oth­er fac­tors have also helped bit­coin, said Richard Ush­er, head of over-the-counter trad­ing at Lon­don cryp­to firm BCB Group, cit­ing a move by the Binance exchange to con­vert its $1 bil­lion indus­try recov­ery fund to tokens includ­ing bitcoin.

“With CPI falling in line with expec­ta­tions today and the recent fall in glob­al yields sig­nalling that inter­est rate hikes may be pared back, we have bro­ken $25,000 with $28,000 the first tar­get,” said Usher.



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