Bitcoin Rises Toward $30,000 as Bank Woes Ripple Across Markets
(Bloomberg) -- Bitcoin and the wider crypto markets pushed higher Thursday as investors reacted to the latest signs of stress in the regional US banking sector and digested the Federal Reserve's monetary policy decision.
The largest digital currency rose as much as 2.9% on Thursday and was trading at $29,241 as of 7:00 a.m. in New York. Smaller tokens including Ether, Cardano and Solana made gains too. Bitcoin has periodically poked above the $30,000 level over the past three weeks only to slip back, after a 76% jump this year.
PacWest Bancorp is the latest locus of concern about US regional banks after the collapse of three rival California-based lenders. Crypto proponents argue that eroding confidence in fiat currency is bolstering the case for Bitcoin.
Investors also strengthened bets on Fed interest-rate cuts later this year after Chair Jerome Powell hinted that the central bank's latest hike could be the last. Tighter credit conditions and risks such as the struggling commercial real estate sector are stoking expectations of economic turbulence.
“We expect to see significantly more volatility in the months ahead, especially if there are any further aftershocks in US regional banking or concerns around the state of commercial property loans,” said Tommy Honan, head of market analysis at crypto exchange Swyftx.
Bitcoin has partially rebounded in 2023 from last year's crypto rout, which sparked blowups including that of the FTX exchange and triggered a US regulatory crackdown. But the revival has sputtered near the $30,000 level. It reached a record of almost $69,000 in November 2021.
--With assistance from Sunil Jagtiani.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
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