Bitcoin, the world’s most popular cryptocurrency, once again showed its volatile nature as its price surged above $26,000 before dropping to $24,070 on the Bitstamp exchange.
Bitcoin, the flagship coin, has seen another period of volatility, with its price breaking above $26,000 for the first time since July 2022, returning to $24,070 on the Bitstamp exchange.
Veteran Trader Peter Brandt took to Twitter to explain that he is not surprised by such a move since the $26,000 make-it-or-break-it level was rejected.
As reported by U.Today, the market capitalization of the flagship cryptocurrency exceeded $500 billion for the first time since mid-2022.
The price of Bitcoin was inflated in part by the recent banking crisis in the United States. The current meltdown has been compared to the 2013 Cyprus banking crisis which thrust the world’s first cryptocurrency into the mainstream for the first time in its existence.
Investors continue to see bitcoin as a safe haven asset in times of financial turmoil despite its underperformance.
Due to the recent crisis, the US federal government has taken steps to reassure depositors by guaranteeing their deposits and implementing emergency measures to ease their concerns. Additionally, market speculation suggests that the current slump may prompt the US Federal Reserve to delay raising interest rates.
With the crypto community betting on a Fed pivot, February’s CPI report shows inflation isn’t going away quickly. Therefore, there is still a compelling need for the central bank to keep raising rates, according to Bloomberg economists. While a 25 basis point hike at the March FOMC meeting would be appropriate, the decision will be a tough call for the Fed amid continued concerns over financial turmoil, with mounting risks to financial stability. following the collapse of Silicon Valley Bank.