Bitcoin Gains Quickly – Climbs to Nine Months High

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The crypto market continued to rise on Friday despite the tense stock market sentiment. Bitcoin, the largest digital currency by market cap, rose to $27,025 on the Bitstamp trading platform.

This is the highest level since June. Since the beginning of the week, the price has increased by about a quarter. Other crypto assets such as ether also rose at the end of a turbulent week. Nearly 23,000 cybercurrencies all had a market cap of around $1.14 trillion.

Despite recent gains, the crypto market has been under pressure this week by banking turmoil in the US and Europe. But the declines were much more modest than, for example, in the stock markets or some classical currencies. This is unusual given that digital assets are among the most volatile financial stocks. Cryptocurrencies, on the other hand, were significantly affected by the problems experienced at crypto bank Silvergate in early March.

Support for falling interest rates

Bitcoin and Co recently received support from significantly lower capital market interest rates, which also fell on Friday. “The prospect of more cautious monetary policy by central banks on both sides of the Atlantic serves as a tipping point for the future,” says crypto expert Timo Emden.

Due to the problems experienced in the banking sector, the interest expectations of the central banks decreased significantly and this situation brought the market interest rates down. In the US, there has even been speculation that the US Federal Reserve may begin lowering interest rates later in the year. This also contributed to the overall decline in yields.

Lower interest rates often benefit risky asset classes like digital currencies because safer assets like government bonds pay less interest. (SDA)

Source :Blick