Bank chaos: Bitcoin is worth more than $28 thousand for the first time since June

Against the background of turmoil in the banking sector, the largest cryptocurrency Bitcoin increased by more than 4% in a day and reached the mark of 28.2 thousand dollars for the first time since June 2022.

It is reported Bloombergdata Coindesk.

As of 12:30 p.m. in Kyiv, Bitcoin was trading at $28,200, and it had grown to $28,600 in the last day.

Since the beginning of the year, the cryptocurrency has grown by more than 70%. Other tokens have also risen in price: Ether has risen almost 50% since December 31, and Solana has more than doubled.

The chaos in traditional banking markets has been caused by the collapse of a number of major US banks last week, as well as the government-brokered buyout of rival Credit Suisse Group by Swiss bank UBS. Such developments will fuel expectations that central banks will have to hold off on rate hikes.

A number of investors called on the Fed to hold off on raising interest rates amid banking instability. But data released last week showed that the core consumer price index rose more than forecast. As a result, it is currently unclear how the Fed will respond to conflicting market signals.

Earlier it was reported that oil prices fell down to a 15-month low on fears that risks in the global banking sector could trigger a recession that would dampen demand for fuel, and ahead of a potential U.S. interest rate hike this week.

We remind you:

The Federal Reserve will begin daily swap line operations with the Bank of Canada, the Bank of England, the European Central Bank and the Swiss National Bank to to provide their sufficient amount of dollars.

Swiss bank UBS agreed to buy Credit Suisse for $3.25 billion after negotiations over the weekend mediated by Swiss regulators.