The recent banking crisis that rattled investors, depositors and regulators has had a profound impact on various asset classes. As soon as banking woes emerged in the U.S., gold rallied as investors rushed to buy the safety of the precious metal. Surviving initial shocks, crypto markets too rallied, as safe haven demand for Bitcoin and other cryptocurrencies spurred a bullish industry-wide momentum.
Overall crypto market cap has recorded a growth of 11 percent over the past 30 days.
Bitcoin, the leading cryptocurrency outperformed the broader market to gain more than 20 percent in the past 30 days.
The safe haven demand that Bitcoin managed to gain amidst the banking crisis is far more than what gold has accumulated.
Over the past 30 days, Gold Futures have recorded a gain of 8.2 percent, surging from $1,836.70 per troy ounce to $1,984.50 per troy ounce. Though the banking crisis and the uncertainty it triggered did spur buying in the yellow metal, lifting it to the level of $2,031.70, on March 20, the rally later lost steam.
Though Bitcoin and the broader crypto market outperformed gold, only 8 other cryptocurrencies among the top 100 have managed to beat gold over the past 30 days by rallying more than 8.2 percent. These are led by 46th Conflux (CFX) that surged 92%, 87th ranked Mask Network (MASK) that rallied 63 percent, 81st ranked XDC Network (XDC) that gained 55 percent and 6th ranked XRP (XRP) that added 43 percent. 18th ranked Wrapped Bitcoin (WBTC) gained 20 percent, closely followed by Stellar (XLM) that added more than 19 percent. Leading alternate coin and 2nd ranked Ethereum (Ether) rallied more than 9 percent. 83rd ranked PAX Gold (PAXG), a gold-backed cryptocurrency also gained more than 9 percent.
On a year-to-date basis, overall crypto market capitalization has increased around 49 percent whereas gold prices have rallied only 8.8 percent. Also, 77 of the top 100 cryptocurrencies have outperformed gold, rallying more than 8.8 percent on a year-to-date basis.
The banking crisis has reinforced the hopes of a dovish pivot by The Federal Reserve. Both crypto and gold stand to gain if the Fed’s interest rate hikes do not happen as projected earlier.
Overall crypto market capitalization is currently at $1.19 trillion versus $1.18 trillion a day earlier.
Bitcoin is currently trading at $28,419.93, having gained half a percent in the past 24 hours. Bitcoin had touched a high of $29,159.90 earlier in the trade, breaching the $29k level for the first time since June 2022.
Ethereum is currently trading at $1,794.66, almost flat on an overnight basis.
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