Hassan Maishera
TL;DR
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Bitcoin is trading above the $28,500 level once again after a late rally on Tuesday.
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The rally is fueled by fresh banking woes in the United States.
Bitcoin Surges Past $28,500
Bitcoin, the world’s number one cryptocurrency by market cap, has resumed its rally once again. This comes after the cryptocurrency added more than 2% to its value in the last 24 hours.
Bitcoin’s price stayed around the $28k region for the best part of Tuesday before embarking on a rally following fresh banking woes in the United States. Following the collapse of the First Republic Bank a few days ago, the shares of two regional banks, Los Angeles-based PacWest Bancorp (PACW) and Phoenix-based Western Alliance Bank (WAL), tumbled 27% and 15%, respectively.
In addition to that, the latest Job Openings and Labor Turnover Survey (JOLTS) arrived weaker than expected.
With banks in the United States currently struggling, more investors are turning their attention to the cryptocurrency space, and this positively affected the prices of Bitcoin and other cryptocurrencies.
The jobs data reported on Tuesday also suggested that the economy was weakening and that inflationary pressures might subside, another potential cause for rallying to digital assets.
Ether, the second-largest cryptocurrency by market cap, is not left out of this rally. However, ETH is up by more than 1% in the last 24 hours and continues to trade below the $1,900 level.
The US Federal Reserve is set to reveal its latest interest rates decision later today, and market experts believe that the interest could increase by 25 basis points.
