Crypto market largely unaffected by ECB decision to hike rate by 50bps
The crypto market is largely unaffected by the European Central Bank’s latest 50 basis point rate hike, with the flagship cryptocurrency Bitcoin only seeing a minor dip following the announcement.
Meanwhile, traditional stock markets saw most stocks rebound after opening losses following the rate hike. However, long-term sentiment points to future pains as markets were hoping for leniency from the central bank amid the turmoil of the prior day.
Bitcoin remains stalwart
The flagship cryptocurrency saw a slight sell-off in the hour following the ECB rate hike after briefly breaking $25,000 and was trading at $24,752.58 as of press time.
BTC has shown no signs of contagion from the turmoil in the traditional financial markets over the past couple of weeks and has continued its steady testing of resistance levels above $25,000 following a blazing climb of more than 15% over the past seven days.
The top 10 cryptocurrencies by market cap mostly experienced similar price movements and were overall unaffected by the ECB rate hike.
However, only BTC, Ethereum, and BNB have posted significant weekly gains. BNB was up over 8% over the past day.
TradFi in shambles?
European banking stocks saw their worst day on March 15 since Feb. 24, 2022, after Credit Suisse’s troubles caused the bank’s stock to fall 24%. The overall sector was down 7%.
The shares have since recovered after the Swiss central bank announced a $54 billion loan for the ailing lender on March 16 — a few hours before the rate hike.
However, it is unclear whether the Swiss National Bank’s lifeline will be enough for the lender to survive long-term, with some analysts expecting it will need another loan within the year.
Meanwhile, on the other side of the pond, U.S. regulators are still dealing with the collapse of two banks within a week — reigniting the original debate for why we need Bitcoin.
