Bitcoin past $30K for first time in 10 months

The world’s biggest crypto currency increased 6.3 per cent to $30,061.0, its highest level in 10 months

Bitcoin increased steeply on Tuesday, exceeding the $30k mark for the first time since June 2022 as markets bet on a less hawkish Federal Reserve (Fed) in the coming months, while sentiment also improved amid easing concerns of a banking crisis.

The world’s biggest crypto currency increased 6.3 per cent to $30,061.0 at 05:23 GMT, its highest level in 10 months. The token also mainly steered gains across the board, with Ethereum 3.3 per cent higher, while Binance Coin and Ripple gained 4.6 per cent and 2.3 per cent, respectively.

Advances in Bitcoin also pushed total crypto market capitalization to $1.4trln. Tuesday’s gains put Bitcoin nearly 80 per cent higher in 2023, hugely surpassing most other asset classes.

Bitcoin’s latest rally takes place amid a wider improvement in sentiment as markets start pricing in the probability for a restricted number of interest rate raises by the Federal Reserve during the coming months, specifically as the U.S. economy cools further.

Stock markets also saw a strong rally on Tuesday after this notion. While the Federal Reserve is likely to raise interest rates at least once more, dollar index futures suggest that markets are positioning for a subsequent halt, or even change in the Federal Reserve’s hawkish stance.

A less hawkish Fed is good for Bitcoin as well as other crypto currencies because a steep increase in interest rates wiped out more than two-thirds of total crypto market capitalization in 2022.

The CPI inflation data and the minutes of the Fed’s March meeting are in focus this week as markets look for more indications on the path of interest rates.

Bitcoin has been rising over the past month, ducking concerns of a banking crisis as the token drew some safe haven players amid worries over a wider collapse in the banking system.

But comparatively low trading volumes also made for bigger price moves in the token, specifically as its decline through 2022 soured investor sentiment towards crypto currencies.

A series of high-profile scandals and liquidations also kept investors cautious about crypto currencies, while U.S. authorities engaged in regulatory crackdowns against the crypto space.