Bitcoin Hovers Close to $28,900, Stablecoins Dip After the US Announces Another Interest Rate Hike

Bitcoin, that breached the mark of $30,000 (roughly Rs. 23.6 lakh) only days ago, is now again trying to reclaim that price point. The most expensive cryptocurrency managed to mint a small profit of 1.60 percent on Thursday, May 4. At the time of writing, the trading value of Bitcoin stood at $28,986 (roughly Rs. 23.6 lakh) on both, national as well as international exchanges. In the last 24 hours, Bitcoin grew in value by $528 (roughly Rs. 43,140).

Ether spiked price-wise by 1.90 percent on Thursday to trade at $1,898 (roughly Rs. 1.55 lakh). The value of Ether has risen by $38 (roughly Rs. 3,104) in the last 24 hours.

The small growth for most altcoins comes in the backdrop of another hike in the interest rate that the US announced on May 3 to fight against inflation there.

“Bitcoin recovered after the US Federal Reserve's 25bps interest rate hike. Strategists suggest that the ongoing US banking crisis is boosting crypto prices as another potential bank failure looms. Investors will also monitor the Friday US employment numbers' impact on crypto,” Rajagopal Menon, Vice President, WazirX told Gadgets 360.

Stablecoins pegged against the US dollar recorded value drops on Thursday. These include Tether, USD Coin, Ripple, and Binance USD.

Tron, Bitcoin Cash, Cronos, Elrond, and Bitcoin SV also recorded losses next to the stablecoins.

Meanwhile, the cryptocurrencies that did manage to see profits, settled with small gains.

Binance Coin, Cardano, Polygon, Solana, Polkadot, and Litecoin — all recorded minor profits.

The overall crypto market grew by 1.65 percent in the last 24 hours. As per CoinMarketCap, the valuation of the crypto sector stood at $1.65 trillion (roughly Rs. 97,74,533 crore).

Industry insiders believe that the crypto market is only bound to grow in the coming days, especially owing to the latest banking unrest in the US and weaker than expected jobs data there.

“Furthermore, the Bitcoin hash rate has just soared to 439 exahashes per second, and the number of transactions processed on the Bitcoin blockchain in one day exceeded 682,000, which demonstrates the network's strength and stability, and the increasing adoption of Bitcoin for various use cases,” the research team at the CoinDCX crypto exchange told Gadgets 360.

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