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Bitcoin Price Soars Again, Investors Wait for US Inflation Data Next Week

Previously, Bitcoin’s (BTC) dominance rate or Bitcoin’s dominance rate, which measures the share of cryptocurrencies in the wider market, has increased markedly since the ongoing instability of the US banking sector nearly two months ago.

Since early March, Bitcoin’s dominance rate has increased from 42 percent to a 22-month high of close to 49 percent. These conditions show that the performance of the top crypto currencies is quite resilient against the wider market.

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By comparison, the S&P SPDR regional banking ETF, which seeks to replicate the performance of the US regional banks index, has fallen by 35 percent in the same timeframe.

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In March, three US banks namely Silicon Valley Bank (SVB), Signature Bank (SBNY) and Silvergate Bank (SI) failed. That sparked fears of a severe banking crisis.

First Republic Bank (FRCB) became the latest victim of the banking crisis. However, Federal Reserve Chair Jerome Powell said the banking sector was still healthy and resilient.

According to Decentral Park Capital Portfolio Manager Lewis Harland, the growing dominance of the bitcoin market amidst the instability of the banking sector and declining banking stocks is a testament to the strengthening appeal of cryptocurrencies as anti-US. playing the dollar or betting on the weakness of the dollar is like gold and oil.

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“You’re seeing better BTC performance in the crypto market when regional bank share prices are collapsing. This signals that BTC is a high-quality, anti-dollar liquid play for investors as the crisis unfolds,” Harland said, quoting the CoinDesk page, Thursday (4/5) /2023).

Expectations of fresh liquidity easing by the Federal Reserve (Fed) have been firming amid the banking crisis, signaling dollar weakness going forward. On Wednesday, the Fed raised interest rates by 25 basis points and opened the door to a potential break in June.

Bitcoin Price Soars Again, Investors Wait for US Inflation Data Next Week

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Bitcoin Price Soars Again, Investors Wait for US Inflation Data Next Week

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