Bitcoin traded at a nine-month high on Tuesday, posting gains of more than 30% in four days, ignoring the chaos in global markets following the collapse of Silicon Valley Bank last week and expectations that interest rates US interest won’t go up as fast.
As stated Reutersbitcoin gained 9.6% to $26,533, its highest level since June 2022, for its fourth consecutive day of gains.
The main cryptocurrencies have been boosted in recent days by the announcement by the US authorities of plans to limit the consequences of the collapse of Silicon Valley Bank (SVB).
The US authorities’ action helped stabilize the major “stablecoin” USDC, whose issuer, Circle, had $3.3 billion worth of deposits at SVB. The stabilization of USDC, a key player in digital token trading, was seen as positive for the cryptocurrency sector as a whole.
Bitcoin, the largest cryptocurrency, took the bankruptcies of SVB and Signature Bank in its stride over the weekend, and Silvergate Bank earlier in the month, all of which are key banking partners for a number of crypto companies.
US consumer price data, which showed inflation is still rising but at a slower pace than the previous month, helped the asset on Tuesday, analysts said. The long-awaited reading could prompt the Federal Reserve to slow or even pause raising interest rates next week.
“The fact that the CPI data is in line with expectations has been very supportive for interest rate sensitive crypto assets such as bitcoin,” said James Butterfill of digital asset manager CoinShares.