One of the world’s top cryptocurrencies, Bitcoin, surged above $30,000 for the first time in 10 months on Tuesday, continuing its steady growth. Experts say investors are raising interest rates in the hope that the US Federal Reserve will soon end its aggressive campaign of tightening monetary policy.
In Asian trading, the price of bitcoin hit $30,438, up 2% from $30,262. Since the beginning of the month, the cryptocurrency is up around 6% in price, after the price rose 23% in March.
The second largest cryptocurrency, Ether, is up 0.75% from $1925.80 to $1942.50. Crypto investors are looking forward to the Ethereum blockchain upgrade as the $33 billion currently staked from the protocol can be withdrawn into wallets or exchanges and traded at their discretion.
Some even fear that this could cause the exchange rate to collapse. The software update will allow you to redeem coins that have been locked on the network for the last three years for interest.
The surge in cryptocurrency prices followed Friday’s report on the state of the “nonfarm” business sector, which showed employers maintained a high hiring rate in March, suggesting the US economy is still resilient.
In addition, the turbulence in the banking sector, triggered by the collapse of the Silicon Valley Bank, increased the expectations of market participants, who assume that the Fed will not raise interest rates significantly in the long term as it hopes for relief in the sector. According to CMC Markets experts, the reason for the growth of cryptocurrencies was traders’ optimism about the monetary policy of central banks.