Bitcoin Regains Momentum in Asia as Investors Dismiss Banking and Fed Worries
Bitcoin still faces regulatory and macroeconomic risks that could potentially weigh on its price in the future. Many countries are still grappling with how to regulate cryptocurrencies, while the Federal Reserve’s plan to taper its bond-buying program could lead to higher interest rates and a stronger US dollar, potentially hurting the appeal of Bitcoin as a store of value.
Bitcoin rose above $28,000 in a single day after the US Federal Reserve rate hike caused prices to drop. Will the momentum hold?
Bitcoin addresses with balances of 1,000 Bitcoins are declining. What do you mean?
- Bitcoin is regaining momentum in Asia.
- Despite concerns over banking, the Federal Reserve’s potential actions.
- The cryptocurrency’s resilience can be attributed to its decentralization.
- Increasing adoption and growing mainstream acceptance.
- Institutional investors showing more interest in Bitcoin.
Bitcoin Shows Resilience, Rebounds Above $28,000
Concerns about federal monetary policy, increased regulation, and banking sector instability are over. After a disappointing Federal Reserve rate hike for some observers, investors have pushed the largest cryptocurrency by market cap back above $28,000 a day after Bitcoin crashed.
BTC recently gained 3.8% over the past 24 hours, trading around $28,393. Even that level earlier in the day represents a setback from the crisp air approaching $29,000.
Bitcoin is up about 22% this month or more than 65% since January 1st.
“The crypto ecosystem is under attack. We see all this regulation through enforcement attempts, but we also see a widespread banking crisis in banks serving the crypto community,”
said a cryptocurrency trading firm. Benoit Bosc, global product lead at GSR Markets, told CoinDesk TV.
“As a result, you have a quality flight to the majors. Bitcoin has benefited the most since these events began and have recovered significantly. Federal Reserve yesterday The Fed’s actions not only refused to actually consider cutting rates, they also refused to interrupt the rate hike cycle.”
Bosc said the market had reacted to comments from Fed Chairman Jerome Powell and US Treasury Secretary Janet Yellen and who reiterated their concerns, about inflation.
Powell has not guaranteed the Fed will not raise interest rates again, some of his Fed commentators have blamed the recent banking crisis, and Yellen has threatened a wide range of sectors without congressional approval.
Does not promise to protect all bank deposits in the event of a collapse. As a result, nearly all persuasive risk assets crashed, and cryptocurrencies were wiped out.
“The first reaction is one that correlates with all risk assets.” But then there is this store of value, Bitcoin’s digital gold attribute, which means inflation is still there. They fight it, but it still exists.
“Bitcoin has limited supply so this is a better alternative. And there are problems with stablecoins. I can see it.”
The second-largest cryptocurrency by market value recently traded at $1,810, up 4.6% from the same time on Wednesday. Other major cryptocurrencies are primarily green, making up for lost positions the day before. Stablecoins XRP and TRX, the tokens of the blockchain-based platform Tron Network, recently surged 5.7% and 9.4%, respectively.
TRX dropped yesterday after the U.S. Stock Exchange (SEC) accused its founder of selling unregistered securities and airdrops, fraud, and market manipulation. Litecoin continues its recent momentum rising 7.8%.
Institutional Investors Refrain
The number of Bitcoin addresses holding 1,000 BTC or more has steadily declined by 12% since March 2022.
A metric that provides insight into institutional appetites suggests that this critical group is reluctant to add BTC to their coffers.
More prominent Ether investors exhibit slightly different behavior. While the price movements of BTC and ETH have traditionally been closely linked, the trajectories inherent in whale numbers are going in opposite directions. The number of ETH whales increased by 5% over the same period.