Bitcoin Rally Sees Almost 20% Gain This Week
As of 09:30 UTC on Friday, BTC was exchanging hands for $26,085.37. It reached a weekly high price of $26,514.72 on 14 March after opening the week at $22,156.41.
The substantial increment in price has seen the largest digital asset by market capitalization spike by 60% year-to-date (YTD) from the year's opening price of $16,547.91.
Bitcoin rally attributed to convulsions in banking sector and interest rate cuts
The cryptocurrency industry is largely affected by events in the banking sector as well as activities by the Federal Reserve in the US. Reports of a collapse of three regional lenders in the US and liquidity problems at Credit Suisse Group AG are leading to expectations of an end to the monetary tightening that destabilized the decentralized finance industry in 2022.
According to many industry experts, the renewed interest in BTC reinforces the digital currency's dual role as a credible risk asset and a hedge against inflation.
Amid the Russia/Ukraine crisis, the Federal Reserve consistently hiked interest rates, leading to a demand for government bills and bonds. This did not augur well for the digital currency market, which has thrived on offering its stakeholders above-average annual percentage yield (APYs). This contributed to the market's nosedive for the majority of 2022.
Multiple reports point out that the Feds will pause interest rate hikes by the summer of 2023 and begin cutting the federal-fund rates around the end of 2023. This anticipation has also played a role in the significant ascension of the cryptocurrency.
Bitcoin dominance pushes the crypto market above $1.1 trillion
The crypto market has seen a trading volume of approximately $69 billion in the past 24 hours. This has taken its capitalization to $1.12 trillion.
Despite a fall in its historic values, BTCs fully diluted market capitalization of around $552 billion sees it control 45% of this market. In second place is the native asset of Ethereum, Ether (ETH), which has an 18% crypto market share.
Author: Raphael Minter
Raphael Minter/ Albert Zuhnden (preferred pen name) is a crypto finance writer, data miner, and fundamental analyst. Raphael has written hundreds of articles about centralized and decentralized financial instruments such as precious metals, commodities, stocks, and cryptocurrencies. He broke into digital finance in 2016 and believes digital assets and blockchain technology is the future of finance.