Bitcoin price: Cryptocurrency smashes US$30,000 barrier in renewed surge
The price of bitcoin and ethereum are again surging as debate whirls about whether the US will pivot on interest rates.
The bitcoin price hit AU$45,379 today, giving it gains of about 50 per cent over the past six months.
Ether was driven up to AU$2,896, up about 41 per cent since the new year.
Notably, the price of bitcoin broke through the US$30,000 barrier today for the first time since June 10, 2022.
It’s a strong comeback for the two cryptos, which are beating major stock indexes and commodities, according to CNBC.
Bitcoin was hit hard last year by the collapse of major crypto financial institutions, including FTX.
And the recent rise in crypto goes against the tide of the headline-making failures of digital coin-friendly Silicon Valley Bank, as well as Silvergate Capital and Signature Bank.
Vijay Ayyar from crypto exchange Luno said the high-profile bank failures had shone a spotlight on the power of decentralised currencies.
“Decentralised finance is beginning to hit home in terms of a concept to many more people now,” he said.
Markets are watching to see if the US Federal Reserve will raise interest rates again. Bitcoin jumped in March when a report indicated that inflation was slowing.
The latest US Labor Department March employment figures meanwhile showed the US economy added 236,000 jobs last month.
This was slightly less than expected, and came as the unemployment rate inched down to 3.5 per cent.
Analysts considered the jobs report solid, meaning it could translate into further Federal Reserve interest rate hikes, depending on additional upcoming data.
After sustaining early losses, US equities climbed back as the session progressed.
Wall Street had been closed for a holiday on Friday when the data was first released.
Both the Dow and S&P 500 finished positive, while the Nasdaq ended just slightly down.
European bourses and Hong Kong remained on vacation Monday, dampening the trading volume in the United States.
“It’s a bit of a wait-and-see trade here,” said Briefing.com analyst Patrick O’Hare, who described the market as broadly cautious ahead of this week’s heavy calendar.
– with AFP
