Bitcoin and cryptocurrency markets were bullish today as investors reacted to the latest signs of stress in the US banking industry and the US Federal Reserve announced its monetary policy decision.
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The largest cryptocurrency had risen as high as $29,400 today. However, prices began to decline after noon. As of the moment, BTC is trading at $ 28850 with an increase of 2%. The largest altcoin Ethereum is trading at $ 1888.
PacWest Bancorp, on the other hand, is the latest concern for US regional banks after the collapse of three rival California-based lenders. The bank is said to be on the verge of bankruptcy.
Crypto advocates argue that declining reliance on fiat money has fueled interest in Bitcoin.
Investors also bolstered expectations that the Fed will cut rates later this year, after Chairman Jerome Powell hinted that it could be the last of the central bank's rate hikes.
Risks such as tightening credit conditions and the struggling commercial real estate sector are fueling expectations for economic turbulence.
“We expect to see significantly more volatility in the coming months, particularly if there are further aftershocks in US regional banking or concerns about the state of commercial real estate loans,” said Tommy Honan, head of market analysis at crypto exchange Swyftx.
Bitcoin rallied somewhat in 2023 after last year's crypto crash that led to crashes and triggered US regulatory pressure, including on the FTX exchange. However, the revival approached the $30,000 level.
*Not investment advice.