Bitcoin Price: US$ 24,113.48 (+9.62%)
Ethereum Price: US$ 1,673.45 (+5.89%)
Bitcoin, the largest cryptocurrency in the world by market capitalization, has surged 18% over the past 24 hours, reaching over $24,200, with its largest daily increase in almost a month, despite the reasons for the upturn being unclear. According to Sean Farrell, head of digital-asset strategy at FundStrat, the bitcoin rally may be attributed to a cohort of investors recognizing the fragility of the central banking system and the solutions bitcoin offers. Meanwhile, a report by CoinShares revealed that digital asset investment product outflows hit a record weekly level, reaching $255 million and representing 1% of total assets under management, with Bitcoin being the primary focus for outflows.
Bitcoin has seen a bullish surge above $22,000 as the United States Federal Reserve injects liquidity into the US economy, resulting in a 15% increase from the two-month lows seen on March 10. Despite Silicon Valley Bank and Signature Bank being the latest victims of the Federal Reserve’s rising interest rates, the crypto markets have seen no reason to abandon optimism. In other news, the Euler attack has caused locked tokens and losses in 11 decentralized finance (DeFi) protocols, including Balancer, which has over $1 billion total value locked (TVL). The total cumulative losses for the affected protocols are $37.6 million.
Binance CEO Changpeng Zhao has announced that the remaining $1 billion in funds in its Industry Recovery Initiative will be converted from BUSD stablecoin to “native crypto” due to concerns about the stability of stablecoins following the failure of three major crypto-friendly banks, which caused USD Coin to fall to $0.87. CZ listed Bitcoin as one of the native cryptocurrencies in the announcement. Additionally, Binance will suspend GBP deposits and withdrawals starting May 22, as Skrill Limited, the U.K.-based partner Binance uses for Faster Payments Service transactions, will no longer support it. In related news, ex-congressman Barney Frank has suggested that the recent abrupt shutdown of crypto-friendly Signature Bank was part of an “anti-crypto message.”
The depegging of Circle’s USDC stablecoin has led to a surge in trading volumes on decentralized exchanges (DEXs) Curve Finance and Uniswap. Curve Finance’s trading volume hit $6.03 billion on March 11, with its popular stablecoin pool accounting for nearly 80% of the total volume. Meanwhile, Circle’s USDC stablecoin has almost regained its full value after dropping 13% on Saturday, with Circle minting nearly half a billion dollars in USDC on Monday, indicating that market confidence may be returning to the stablecoin issuer.
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