Bitcoin Inches Near $25,000 in Fresh Cryptos Rally
Bitcoin price continued to rally early Tuesday as a key US banking sector risk indicator spiked, strengthening the case for a pause in Federal Reserve’s hawkish pose which may probably halt further rate hikes.
The leading cryptocurrency by market value rose to a three-week high of $24,900, extending a three-day winning streak, CoinDesk data show. Prices pretty much reversed the entire drop from $25,000 to $19,500 seen in the second half of February amidst rising stress indicators in the financial markets.
The surge in the banking stress indicator comes after the failure of three U.S. banks, including the startups-focused Silicon Valley Bank, within five days and has prompted investors to reassess their outlook for interest rates.
The Fed rate hike bets have crumbled in the past 24 hours and the CME’s FedWatch tool now suggests a 46% chance that the central bank will keep rates unchanged in the range of 4.5%-4.75% next week.
Markus Thielen, head of research and strategy at crypto services provider Matrixport, said that signs of financial market stress might mean more government guarantees in terms of liquidity.
The recent rally on Bitcoin and other cryptocurrencies, in general, are widely considered pure liquidity plays by some market analysts.
The global crypto market capitalisation inched upward, settling at $1.09 trillion during the intraday trading session, a 7.52% increase over the last day. Data from Coinmarketcap put the total crypto market volume over the last 24 hours at $88.01 billion.
This makes a 4.23% increase in a day trading session. Also, the total volume in DeFi is currently $7.79 billion, translating to 8.86% of the total crypto market 24-hour volume.
The volume of all stablecoins settles at $83.28 billion amidst the ongoing rally, which is 94.63% of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 44.09%, an increase of 1.77% over the day. # Bitcoin Inches Near $25,000 in Fresh Cryptos Rally