The price of bitcoin continued to rise early Tuesday as a major US banking sector risk index increased, bolstering the case for a pause in the Federal Reserve’s aggressive stance, which would likely stall further rate rises.
According to CoinDesk statistics, the top cryptocurrency by market value surged to a three-week high of $24,900, extending a three-day winning run. Prices nearly reversed the whole dip from $25,000 to $19,500 witnessed in the second part of February as financial market stress indicators rose.
The rise in the financial stress index follows the bankruptcy of three US banks in five days, including the startup-focused Silicon Valley Bank, and has led investors to rethink their interest rate forecast.
Fed rate rise bets have collapsed in the last 24 hours, with the CME’s FedWatch tool now predicting a 46% likelihood that the central bank will hold rates steady in the 4.5%-4.75% range next week.
According to Markus Thielen, head of research and strategy at crypto services provider Matrixport, indicators of financial market stress might entail greater government liquidity guarantees. Several market observers view the current increase in Bitcoin and other cryptocurrencies to be simply liquidity trades.
The worldwide crypto market capitalization increased somewhat during the intraday trading session, finishing at $1.09 trillion, a 7.52% rise over the previous day. According to Coinmarketcap, the total crypto market volume in the latest 24 hours was $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.
