Cryptocurrencies made notable gains this week as bank stocks stumbled and the worldwide liquidity crisis jolted the stock market. In the week ending March 17, bitcoin experienced a 34% increase, marking its best week since January 2021, which initiated the institutional-led bull run that year. Crypto trading, which operates 24 hours a day, is measured from one Friday’s stock market close to the next by Coin Metrics.
Bitcoin has now increased by 62% for the year, while Ether finished the week with a 23% gain. At one point, Ether traded around $1,780, a price not seen since its surge before the Ethereum merge in September. Year-to-date, Ether has risen by 45%.
As an unexpected banking crisis highlighted the restrictive nature of Fed policy and the potential recession, cryptocurrencies have performed impressively, according to Ed Moya, senior market analyst at Oanda. The Federal Reserve now faces the decision of whether they possess sufficient information about the mounting risks affecting numerous banks. Although inflation is decreasing, some officials may want to implement one more rate hike before pausing, which could prompt a de-risking moment on Wall Street.
Bitcoin’s price surpassed the critical $25,200 threshold twice, reaching over $26,000 as per Coin Metrics. This level has not been observed since June, just days before its pre-FTX low of approximately $18,000.
