He Bitcoin (BTC)The main cryptocurrency in the world, it shot up 3.8% and exceeded $30,000, a value that had not reached since mid-June 2022. However, almost all of them cut their initial earnings.
ethereumthe second most relevant, rose 1.1% to US$1,903.
The rest of the cryptocurrencies shoot up to 15%, led by Solarium, which climbs 14.1% to US$23. They follow you in the ranking Binance (+3.6%), Cardano (+2.2%), and Ripple (+1.1%).
Dogecoin For its part, it rises 0.5%, although in the last seven days it has accumulated a drop of 11.8%.
Hopes that the Fed will also move away from its cycle of aggressive interest rate hikes they have also boded well for Bitcoin and other cryptocurrencies. The sharp rise in borrowing costs has wiped out more than two-thirds of the total cryptocurrency market capitalization last year.
Today’s gains, which bring Bitcoin’s year-to-date rise to close to 80%, have pushed the total cryptocurrency market capitalization to $1.4 trillion.
Expectations about cryptocurrencies
He rise of cryptocurrencies is mainly produced in response to a change in expectations about the future of the economy. More specifically, expectations around the actions of the Federal Reserve.
Besides, 2022 was a difficult year for the cryptocurrency sector since interest rates were tightened, generating complications for high-risk investments.
This year shows a different trend. The inflation HE softened globally in the last two quarters, despite maintaining high levels, while fears of a global recession are emerging, exacerbated by the bank swings of the last month. Within this framework, the market indicates that the Federal Reserve don’t raise interest rates as aggressively as you had anticipated.
On the other hand, the conditions of the crypto sector also suffered some complications as a result of regulatory advances. In that framework, BUSD closed in February as its New York-based issuer, Paxoswas forced to stop minting the stablecoin.
In that sense, Binancetogether with its CEO, Changpeng Zhaois being sued by the US Commodity Futures and Exchange Commission. The accusation indicates that exchanges were made outside of what is indicated in federal laws from the country. there was also bankruptcies. Genesis sank in January, as a result of the ftx drop in November 2022.
Source: Ambito
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