Swiss National Bank Averts Crisis, Boosts Bitcoin Confidence
Bitcoin maintained its position above $24,500 after the Swiss National Bank intervened to prevent a European banking crisis by lending Credit Suisse about $50 billion. This move raised investors' hopes that the U.S. central bank would adopt a more dovish stance in its upcoming rate-setting meeting.
BTC Up 19% Over the Week as Market Optimism Grows
Trading at $24,791, Bitcoin's value increased by 1.4% within 24 hours, according to CoinDesk data. The cryptocurrency has been largely range-bound since Tuesday afternoon when U.S. inflation data improved slightly. Renewed optimism about the U.S. banking sector and the possibility of the Federal Reserve suspending interest rate hikes have pushed BTC up 19% over the week.
CME FedWatch Tool Predicts Lower Chance of Rate Hike
On Wednesday, the CME FedWatch Tool, which predicts interest rate decisions, forecasted a 45% chance of a zero basis point rate hike, with an 80.5% chance of a 25 basis point increase. These numbers contrast sharply with last week's 68% chance of a 50 basis point rate boost.
Crypto Market Performance: ETH and BNB Make Gains
Ether (ETH) experienced a 2% increase, trading around $1,690, while BNB, the native token of Binance's BNB Chain, jumped 7% to trade at $328. The Graph's GRT token surged 13%. The CoinDesk Market Index, measuring overall crypto market performance, was recently up 2%.
U.S. Equity Markets Turn Green Amid Regulatory Support
U.S. equity markets saw a positive movement as regulators supported depositors of Silicon Valley Bank and Signature Bank. The S&P 500 recently rose by 1.2%, while the Nasdaq Composite and the Dow Jones Industrial Average increased by 1.8% and 0.7%, respectively.
European Central Bank Continues Monetary Tightening
The European Central Bank pursued monetary tightening by increasing its interest rate by 50 basis points on Thursday amid rising inflation on the continent. QCP Capital predicts that this move will precede the Fed raising interest rates by 25 basis points.
