(London) The price of bitcoin rose above the symbolic threshold of $30,000 on Tuesday for the first time in ten months, as the first cryptocurrency continued its surge of recent weeks.
Banking sector turmoil and speculation of a possible end to the Fed (US Federal Reserve) rate-hike cycle boosted demand for “cryptos,” helping bitcoin recover from its 60-year slide. % last year,” recalls Victoria Scholar, analyst at Interactive Investor.
Bitcoin, which gained 6.2% to $30,069 on Tuesday around 6 a.m. EST, is up more than 6% in the past 24 hours, dragging other cryptocurrencies like Ether or Ether with it. Dogecoin.
The entire cryptocurrency market was approaching $1.3 trillion, according to the CoinGecko site, which lists more than 10,000 cryptocurrencies.
Some bitcoin supporters claim that cryptocurrencies could be an alternative to the banking sector, recently shaken by the bankruptcy of Silicon Valley Bank (SVB).
An event that seems to have overshadowed the recent collapses in the world of cryptocurrencies, with the bankruptcy of the FTX platform or the crash of the Terra/Luna cryptocurrencies last May.
The appetite for cryptocurrencies is also heightened by the idea that the Fed will stop raising its rates.
The highly volatile sector had benefited, particularly during the COVID-19 pandemic, from ultra-low rates which had pushed investors towards risky assets.
“Keep in mind that the cryptocurrency market is unpredictable, so investors should remain cautious, as the situation could turn around quickly,” warns Walid Koudmani, analyst at XTB.
Bitcoin remains far from its all-time high at $69,992 in November 2021.
“The next data that the markets will watch is US inflation, expected tomorrow” (Wednesday), said Simon Peters, market analyst at eToro.
Higher-than-expected inflation could cause investors to revise their expectations for Fed rate hikes, which could weigh on bitcoin.