The price of Ethereum skyrocketed above $1,820 before seeing a minor pullback. Once the market turned positive, bitcoin continued to trade at its new high of $28,000.
After March 12, when the TradFi scene started suffering a crisis, the value of ether has fallen when compared to the value of bitcoin. The unexpected rise in the price of ETH was not caused by any one particular event.
The exchange rate increased from 0.072 bitcoins to 0.062 ether, which is comparable to an increase of $280. Today, it went up to 0.064, which might signal the start of a phase in which the market begins to recover.
Since its inception in 2015, the total amount of Ethereum tokens available has, for the very first time, declined by roughly 67,000 ETHs, which is equivalent to a loss of $122 million. On January 16, 2023, ETH entered a period of deflation, and since then, the total supply has been continuously decreasing by 1,000 to 2,000 each day. More than 2,100 ETH are being wasted every single day. On the other hand, around 2,000 are distributed to perchers, which results in a supply shortage of approximately 100 ETH.
Bitcoin has been the most popular cryptocurrency asset for market speculators and investors who are trying to avoid banks for the time being. It is possible that Bitcoin’s high rank is due to the fact that it is the crypto asset that is most recognized and incorporated into the overall financial system.
The rise in the price of ETH may imply that there is relative calm in the financial sector, but there is no hard data to support this claim. On the other hand, the continued involvement by the government may bring an end to the financial crisis, and there is optimism for an improvement in the sentiment of the market.
Major banks that were on the edge of failing have achieved spectacular recoveries while the federal government and the FDIC have intervened on behalf of the ones that have been entirely destroyed.
On Monday, the shares of First Republic Bank fell by fifty percent as proponents of the business mused about the possibility of a market meltdown. Despite this, the price of the bank stock rose by an average of 30% today, bringing the entire value of the bank’s assets up to a total of 212 billion dollars as of December 2022.
Janet Yellen, the Secretary of the Treasury, has stated that the government may give fines to any institutions that are engaging in speculative activity over a potential system contagion.
The intervention of large banks like the European Central Bank (ECB), J.P. Morgan, and the Bank of England might potentially preserve the financial system and provide the impression that the crisis is coming to an end. It’s possible that the Bitcoin price climb may slow down as a result of the scene of the bank collapse falling farther behind schedule.
