Singapore: Bitcoin, the leading cryptocurrency, Bitcoin, broke through the significant $30,000 milestone for the first time in 10 months.
The rise in value comes as investors place their bets that the U.S. Federal Reserve will imminently conclude its rigorous monetary tightening campaign.
In the Asian trade, Bitcoin reached its peak at $30,438 and was last with a 2% increase to $30,262. The cryptocurrency has practiced a 6% gain since the beginning of the month of March, after previously increasing by 23%.
The recent increase in the value of the token can be attributed to the release of the highly anticipated U.S. nonfarm payrolls report on Friday, which revealed that employers sustained a robust hiring rate in March, indicating the economy’s continued strength. Despite this positive news, the banking industry has experienced turbulence due to the collapse of Silicon Valley Bank last month, leading market analysts to speculate that the Federal Reserve will be hesitant to raise interest rates significantly to mitigate the stress on the sector.
According to Tina Teng, a markets analyst at CMC Markets, traders’ confidence in central banks’ monetary policies is the driving force behind the widespread surge in the cryptocurrency market.
The recent turmoil in the banking industry at the beginning of March has significantly reinforced expectations for the Federal Reserve to initiate rate hikes earlier than previously anticipated.
Ether, which is the second-largest cryptocurrency, is hovering close to the eight-month peak, it reached last week at $1,942.50. Currently, it has risen by 0.75% to $1,925.80.
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This week, cryptocurrency investors are eagerly awaiting a significant overhaul of the Ethereum blockchain, which will provide access to over $33 billion worth of ether currency. The upgrade, called Shapella, will enable market participants to redeem their “staked ether,” which refers to coins that they have deposited and locked up on the network for the past three years, in exchange for interest.