Bitcoin has surpassed the $30,000 level for the first time in 10 months, which is a significant milestone for the cryptocurrency market.
According to Reuters, this increase in Bitcoin’s value is due to investors’ growing confidence that the US Federal Reserve will soon end its monetary tightening campaign.
Bitcoin’s price rose by 2% to $30,262, following its peak of $30,438 in Asian trade. The cryptocurrency has experienced a 6% increase since the beginning of April and a 23% increase in March.
The US nonfarm payrolls report, which indicated that employers maintained a strong pace of hiring in March, contributed to the surge in Bitcoin’s price.
However, the banking sector has been in turmoil since the collapse of Silicon Valley Bank last month, and this has increased market expectations that the Federal Reserve will not raise interest rates significantly higher for longer, as it seeks to ease stress on the sector.
A markets analyst at CMC Markets,Tina Teng, suggests that traders’ optimism toward central banks’ monetary policy is the reason behind the widespread rally in the cryptocurrency market.
In her words, “The reason behind the broad-based rally in crypto is traders’ optimism toward central banks’ monetary policy,”
She notes that bets for a sooner Federal Reserve pivot on rate hikes have been dramatically strengthened following the bank turmoil in early March.
Similarly, the second-largest cryptocurrency, Ether, is also experiencing a surge in its value. It is standing close to its roughly eight-month peak of $1,942.50 and is currently 0.75% higher at $1,925.80.
The report revealed that Crypto investors are anticipating a significant revamp to the Ethereum blockchain this week, which will provide them with access to more than $33 billion of ether currency.
The Ethereum Shapella software upgrade will allow market players to redeem their “staked ether,” which refers to the coins that they have deposited and locked up on the network over the past three years in return for interest.
