Bitcoin surpassed the $30,000 threshold for the first time in 10 months on Tuesday, adding to its consistent gains as investors increased their wagers that the U.S. Federal Reserve will end its aggressive monetary tightening campaign in the near future.
In Asian trade, Bitcoin peaked at $30,438 and closed 2% higher at $30,262. It has gained roughly 6% since the beginning of the month, following a 23% increase in March.
The token’s increase follows Friday’s closely-watched U.S. nonfarm payrolls report, which indicated that employers maintained a robust hiring tempo in March, indicating that the economy remains resilient.
However, banking sector turmoil triggered by Silicon Valley Bank’s failure last month has increased market expectations that the Fed will not raise interest rates significantly higher for an extended period of time in an effort to alleviate sector stress.
According to Tina Teng, a market analyst at CMC Markets, the widespread rally in cryptocurrencies is due to traders’ optimism regarding the monetary policy of central banks.
As a result of the financial turmoil in early March, the likelihood of a Fed rate rise reversal has increased significantly.
Ether, the second-largest cryptocurrency, was trading near its roughly eight-month high of $1,942.50 reached last week. It was last seen at $1,925.80, up 0.75 percent.
This week, crypto investors eagerly anticipate a significant update to the Ethereum blockchain that will grant them access to more than $33 billion worth of ether currency.
The Shapella software update will enable market participants to redeem their “staked ether” – coins they have deposited and sealed up on the network in exchange for interest over the past three years.