- Bitcoin’s price has surged above $26,000 as stock markets rise and the dollar’s yield declines.
- The U.S. inflation data for February has been in line with market expectations, indicating signs of slowing down.
- The declining dollar’s yield is prompting renewed interest in risk-on assets like stocks and crypto from investors.
- The risk of a global banking crisis is another factor that is influencing Bitcoin’s price.
Bitcoin’s price has surged above $26,000 as stock markets rise and the dollar’s yield declines, leading investors to turn to risk-on assets. As per data by priceprediction, Bitcoin experienced a rise of over 6% in the past 24 hours, reaching a peak of $26,350 on Friday morning.
Bitcoin’s recent increase in value is accompanied by a broader uptick in the cryptocurrency market. The total market capitalization of all cryptocurrencies rose over 4% in the past day to reach $1.17 trillion.
The cryptocurrency market surge follows a recent announcement that major financial institutions like J.P. Morgan and Goldman Sachs will be infusing $30 billion to prevent U.S.-based First Republic Bank from going insolvent.
This has instilled a sense of positive market sentiment, encouraging investors to take on more risk.
U.S. Inflation Data Aligns with Market Expectations
The U.S. inflation data for February has been in line with market expectations, indicating signs of slowing down.
According to traders using the CME FedWatch tool, there is an 84.1% chance that the Federal Reserve will raise rates by 25 basis points. However, there are some who believe that the Fed may choose to maintain the current rate instead.
Declining Dollar Yield
As the Federal Reserve potentially moves away from quantitative tightening, the declining yield of the US dollar is sparking renewed interest in high-risk assets such as stocks and cryptocurrencies among investors.
Global Banking Crisis
The possibility of a global banking crisis is also impacting the price of Bitcoin. Banks around the world, particularly in Europe and the US, are facing the threat of an insolvency crisis, which is causing concern among investors and contributing to the rising value of Bitcoin.
While state governments and large institutions like J.P. Morgan have temporarily prevented a banking crisis, the uncertainty surrounding a potential banking failure is generating a sense of optimism around decentralized alternatives like Bitcoin. This positive outlook is contributing to the surge in Bitcoin’s value.
The post Bitcoin Beats All Odds: Surges Past $26,000 Despite Looming Banking Crisis appeared first on Ripple Coin News.
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Author: Gracie Perez
