Crypto Market Heats Up: Bitcoin And Ether Lead As Coinbase And MicroStrategy Rally
Meanwhile, shares of Silvergate Bank plummeted by 38.62% to close the week at $2.05, while Coinbase shares rose by 33% and MicroStrategy gained 30%. Jack Dorsey’s Block also gained 5%.
Grayscale’s structured bitcoin trust surged by 33% for the week, while its Ethereum trust rose by 16%. Grayscale has suggested that if the banking crisis persists, it’s possible that the Federal Open Market Committee may forgo any interest rate increase when it meets on March 22. Before the crisis, it was widely assumed that the central bank would hike rates by 0.25%.
Inflation, however, fell slightly in February, according to a report from the U.S. Department of Labor, which indicated a decrease from 6.4% in January to 6%.
The surge in Bitcoin and Ethereum comes as the cryptocurrencies continue to be seen as alternative investment options to traditional financial instruments. Many investors are increasingly turning to digital assets as a hedge against inflation and a potential store of value.
The recent volatility in the banking industry has only added to the appeal of cryptocurrencies, with some investors seeing them as a more stable and reliable option in uncertain times.
However, the cryptocurrency market remains highly speculative and subject to extreme volatility. As such, investors should exercise caution and do their due diligence before investing in digital assets.
Last week was a reminder of the ongoing turbulence in both the financial and cryptocurrency markets. As the banking crisis continues to unfold, it remains to be seen how the crypto market will respond and what opportunities and risks will arise for investors.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.