Bitcoin, Ether rise; relief for investors as major banks get liquidity lifeline

Bitcoin and Ether rallied by the end of Asian trading hours on Friday afternoon, together with all other top 10 non-stablecoin cryptocurrencies by market capitalization. Traditional equities also strengthened after First Republic Bank secured a US$30 billion lifeline, a day after Credit Suisse received a loan from the Swiss central bank.

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Fast facts

• Bitcoin rose by 5.78% to US$26,100 in the 24 hours to 4:30 p.m. in Hong Kong. Ether rose 3.81% to US$1,720, according to CoinMarketCap data. Dogecoin was the day’s biggest gainer, rising 6.24% to US$0.07486, followed by Bitcoin.

• The global cryptocurrency market capitalization increased by 4.06% to US$1.12 trillion in the 24 hours to 4:30 p.m. in Hong Kong. The total crypto market trading volume decreased by 15.72% to US$68.83 billion.

• Asian equities strengthened, reflecting Wall Street’s overnight relief rally, as concerns over an impending banking collapse eased after First Republic Bank secured a US$30 billion lifeline from major U.S. banks. This also followed Credit Suisse’s CHF 50 billion (US$53.9 billion) loan from the Swiss National Bank.

• The Shanghai Composite gained 0.73%, the Shenzhen Component Index rose 0.36%, Japan’s Nikkei 225 increased 1.2% and Hong Kong’s Hang Seng Index ended the day 1.64% higher.

• Risk sentiment also picked up among European investors, as the banking crisis fueled market speculation about central banks easing their stance on inflation. Europe’s STOXX 600 rose 1.07% and Germany’s DAX 40 gained 0.74%.

• The euro floated above the US$1.06 mark after the European Central Bank raised interest rates by an expected 50 basis points on Thursday. The bank’s core inflation forecast was adjusted upwards to an average of 4.6% in 2023.

• Gold inched up 0.5% to US$1,928 an ounce, heading for its third consecutive weekly rally, as investors sought safe-haven assets to hedge against the legacy financial system.

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