Bitcoin is on course for one of its biggest weekly gains of recent years, bolstered by wagers on eventual cuts in interest rates as the token rides out convulsions in the banking sector.The largest digital asset is up about 25% since the start of Monday.
It's had a weekly jump of at least that much only 10 times in the past five years, data compiled by Bloomberg show. Smaller coins like Ether and Dogecoin are also rallying.The collapse of three regional US lenders and wobbles at Credit Suisse Group AG are strengthening expectations of an end to the monetary tightening that pummeled crypto in 2022.
The ructions are also reviving claims from Bitcoin's most ardent supporters that the token is an alternative to fiat currency.“The current turbulence within the US banking sector, potentially leading to a more relaxed Federal Reserve stance, reinforces Bitcoin's dual role as a hedge against traditional finance and a credible risk asset,” said Kunal Goel, a research analyst at digital-asset intelligence firm Messari.Bitcoin rose as much as 8.8% on Friday and was trading at about $26,880 as of 7:51 a.m.
in New York. Second-ranked Ether added roughly 6%. Stocks advanced earlier in Asia too as attempts to stem the chaos in the banking sector mollified investors somewhat.Financial markets anticipate a peak in the Fed's benchmark interest in May to fight elevated inflation, followed by around 70 basis points of cuts this year to support economic growth.“Any sign of interest-rate cuts should push funds to riskier assets, which is likely to be enough to bring more institutional funds into the crypto market, regardless of whether macro traders understand or believe in the longer-term Bitcoin investment thesis,” wrote Noelle Acheson,Read more on tech.hindustantimes.com