Bitcoin near $29k on rate hike, banking contagion worries

The top crypto currency was recently changing hands at nearly $28,800, 0.3 per cent lower during the last 24 hours

Bitcoin was a little below $29k during most of Thursday, roughly where it was during most of the last 10 days, as investors considered U.S. and European central bank interest rate hikes and the latest fiascos in an expanding bank crisis.

The original crypto currency was recently changing hands at nearly $28,800, 0.3 per cent lower during the last 24 hours, as per CoinDesk data. Bitcoin dropped below $29k Thursday morning as U.S. stock markets opened, and continued between $28,700 and $29,000.

Ether followed a similar trend and was trading around $1,877, 0.6 per cent lower from same time on Wednesday. Top crypto currencies were flat during the day. Litecoin’s LTC token was recently trading at nearly $87.8 while Solana’s SOL token shed nearly 0.8 per cent to trade at $21.70.

The CoinDesk Market Index, which measures the overall performance of the crypto market, rose 0.3 per cent for the day.

Equity markets struggled with the S&P 500, Wall Street’s benchmark equity index, finishing 0.7 per cent lower Thursday. The DJIA and the Nasdaq Composite lost 0.8 per cent and 0.4 per cent, respectively.

Stocks of several regional banks dipped, including those of PacWest Bancorp, declining 50 per cent Thursday afternoon and Western Alliance Bancorporation dropping 38 per cent. Investors worried over contagion in the bank sector, which started in mid-March with the collapse of three banks, including Silicon Valley and Signature.

PacWest is considering its options, including a potential sale. Western Alliance declined a report that it is for sale.

In bond markets, the note on the two-year Treasury yield dropped 15bps to 3.78 per cent, near its lowest level in 2023. The 10-year Treasury yield also tumbled around 2bps to nearly 3.37 per cent.