Bitcoin holds above $26,000 as sentiment upbeat after US moves

The largest cryptocurrency gained for a fourth straight day, rising 7.9% to $26,142. It last traded above $26,000 in June. It’s up about 29% since the Silicon Valley Bank failure on March 10. Data from derivatives trading data site CoinGlass shows that over $280 million in short crypto positions were liquidated over the past 24 hours.

“While dark clouds hang over Silicon Valley, bitcoin is booming,” said Fiona Cincotta, senior financial markets analyst at City Index. often regarded as an alternative to traditional banking systemAnd as uncertainty grows in that area, bitcoin sees an increase in safe-haven flows.”

The virtual digital token market stabilized after a choppy week that saw three crypto-friendly banks shut down in the US as local regulators took steps to shore up the country’s banking sector, pledging to fully protect depositors. was also involved. The measures helped propel the world’s second-largest stablecoin, USDC, back to its intended $1 peg, which was breached over the weekend after a Silicon Valley bank shutdown.

Hayden Hughes, co-founder of social-trading platform Alpha Impact, said the government bailout of Silicon Valley bank depositors was seen as a boon by many investors, and it has pushed bitcoin past its 200-day moving average of $19,740. helped in He added that sustained moves above the 200-DMA are usually an early indicator of a bullish market.

“If we stay at 25k, the next stops will be 28 and 30k,” Hughes said.

The biggest increase in underlying US consumer prices in February by the most in five months helped support crypto prices. Bitcoin is often seen as a hedge against inflation.

The 0.5% rise in the US consumer price index, excluding food and energy, leaves the Federal Reserve in a difficult position as it tries to thwart still-rapid inflation without adding to the turmoil in the banking sector.

The text of this story is published from a wire agency feed without any modification.