Bitcoin, the most widely traded cryptocurrency, broke through the $30,000 price level on Tuesday, which it has not reached in nearly ten months.
Investors are increasingly confident that the US Federal Reserve will soon halt its aggressive monetary tightening campaign, fueling this upward trend.
Bitcoin Sees a 6% Jump
During Asian trade, Reuters reports that bitcoin reached $30,438 before settling at $30,233, a 1.96% increase. It has gained nearly 6% in the current month, following a 23% increase in March.
After the banking industry's March upheaval increased expectations that the Fed would ease the stress by reducing rate hikes, Wednesday's US inflation report is expected to provide insight into the Fed's next move.
CEO of crypto yield platform Yield App, Tim Frost, hailed the recent rise in bitcoin's price as "a breath of fresh air after a long, cold crypto winter."
The expected shift in the US Federal Reserve's monetary policy, which should create a more stable and predictable environment, is attributed to the resurgence of optimism.
Is Bitcoin Approaching Its Peak Again?
Despite a remarkable recovery, the token's value remains far from its record-breaking peak of $68,000, achieved in November 2021. The token is still struggling to reclaim its former glory, as it has been significantly impacted by the infamous "crypto winter" that ensued after the Terra stablecoin debacle.
According to The Guardian, the fall of Silicon Valley Bank in March, and the broader spillover effects it has sparked across financial markets, have led some cryptocurrency fans to turn to Bitcoin to protect themselves against fears that the entire traditional "fiat" economy would collapse.
In Other News: IMF Renews Calls for Crypto Regulation
Following the collapse of FTX and the turmoil in the banking sector, Cointelegraph reports that the International Monetary Fund (IMF) has renewed its calls to regulate digital assets.
The IMF emphasized the need for "comprehensive and consistent regulation and adequate supervision" in the cryptocurrency industry in its Global Financial Stability Report, released on April 11.
The collapses of FTX, as well as the subsequent collapse of crypto-friendly banks such as the Silicon Valley Bank, were cited in the report as evidence of the need for stricter regulation.
The IMF advocated for "strict prudential requirements" for stablecoin issuers, such as storing, transferring, exchanging, and custody of digital asset reserves.
The report also emphasized the impact of Silicon Valley Bank's failure on the broader crypto ecosystem, claiming it "reverberated across the crypto ecosystem and financial institutions exposed to it."
Cointelegraph tells us that the collapse caused the de-pegging of two stablecoins (Circle USDC and Dai), which held uninsured bank deposits. Investors were also concerned about Signature Bank of New York's presence in the crypto sector, which led to the bank's demise.
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