• Bitcoin (BTC) held steady above the $29,500 mark as investors weighed the latest economic data and banking sector woes.
• Ether (ETH) followed a similar pattern, jumping 3% over the past 24 hours to change hands at around $1,920.
• Bob Baxley of decentralized finance platform Maverick Protocol noted that crypto assets have been performing well as safe havens in uncertain times.
Bitcoin Holds Steady Above $29.5K
Bitcoin (BTC) held steady above the $29,500 mark as investors weighed the latest economic data and banking sector woes. The largest cryptocurrency by market capitalization was recently trading at around $29,600, up about 4% over the past 24 hours. ETH followed a similar pattern, jumping 3% over the past 24 hours to change hands at around $1,920. The CoinDesk Market Index (CMI), which measures overall crypto market performance, was up 6%.
Economic Data Affects BTC Price
BTC dipped slightly during U.S morning trading Thursday on Commerce Department reporting a tepid 1.1% gain in GDP for the first quarter – below expectations of 2%. Personal consumption data also disappointed investors before BTC rebounded later in the day. On Wednesday, regional bank First Republic’s shares plummeted by nearly 50%, yet BTC rose shortly after this news surfaced.
Crypto Assets Perform as Safe Havens
Bob Baxley of decentralized finance platform Maverick Protocol noted that crypto assets have been performing well as safe havens in uncertain times due to their decentralized nature and lack of counterparty risk: “It’s hard not to see this value at a time when banks are looking as unsteady as they are now.”
Investor Confidence Continues Despite Woes
Despite these signs of investor confidence in crypto assets’ ability to hold value even during unsettling events, it’s still too early to tell how much effect this will have on prices going forward: “We may be seeing something like an initial reaction here,” said Baxley; however more people need to come onboard for it to become “a more lasting trend.”
Conclusion
Overall bitcoin and other major digital assets were up for the day despite worries within traditional markets such as regional bank First Republic’s shares dropping nearly 50%. While this demonstrates that many investors view cryptocurrencies such as BTC and ETH as safe haven investments during uncertain times – whether or not this will continue remains to be seen.