The price of bitcoin rose above the symbolic threshold of 30,000 dollars on Tuesday for the first time in ten months, the first cryptocurrency continuing 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% slide l last year
,” recalls Victoria Scholar, an analyst at Interactive Investor.
Bitcoin, which gained 6.2% to 30,069 dollars on Tuesday around 10:00 GMT, is up more than 6% in the past 24 hours, dragging with it other cryptocurrencies such as Ether or Dogecoin.
The entire cryptocurrency market was approaching $1.3 trillion, according to CoinGecko, which lists more than 10,000 cryptocurrencies.
Some bitcoin supporters claim that cryptocurrencies could be an alternative to the banking sector, which was recently shaken by the bankruptcy of Silicon Valley Bank (SVB).
Read alsoAre Bitcoin and cryptocurrencies benefiting from the banking crisis?
A very volatile sector
An event that seems to have overshadowed the recent collapses in the cryptocurrency world, with the bankruptcy of the FTX platform or the Terra/Luna cryptocurrency crash last May.
The appetite for cryptocurrencies is also heightened by the idea that the Fed will stop raising its rates.
The very 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 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.
