• Bitcoin is trading at $28,411 due to interest rate forecasts.
• Coinjournal’s Dan Ashmore believes that the interest rate forecasts are driving the crypto rally rather than the recent banking crisis.
• Investors are optimistic that prices could soar higher over the coming days and weeks as cryptocurrencies trade as risk-on assets.
Bitcoin Rallying Due to Interest Rate Forecasts
Bitcoin, the world’s largest cryptocurrency by market cap, has been performing excellently over the past few weeks with its price currently standing at $28,411. Coinjournal’s Dan Ashmore attributes this crypto rally to interest rate forecasts rather than to the collapse of some banks in recent months.
Interest Rate Forecasts Responsible for Crypto Rally
According to Dan Ashmore during an interview with CNBC, this crypto rally has to do with the interest rate forecasts rather than being a reaction to banking turmoil. He noted that there was an 83% probability of an increase in interest rates in summer before the Silicon Valley Bank collapse but today it is almost 100% likely that there will be rate cuts instead.
Risk-On Assets Attracting Investors
With Bitcoin trading at $28k per coin, investors are optimistic that prices could soar even higher over time as cryptocurrencies are considered risk-on assets. This means they can offer a greater return on investment when compared with other traditional investment options when markets become more volatile or uncertain times occur in wider economy.
Banking Crisis Not Cause of Crypto Rally
Although many attribute Bitcoin’s rally to the collapse of various banks such as Signature Bank, Silvergate Bank and Silicon Valley Bank; Dan Ashmore pointed out that this isn’t necessarily true and instead it is mainly due to changing economic circumstances regarding interest rates which have caused investors to enter into the crypto market.
In conclusion, Bitcoin has been performing excellently over recent weeks due primarily to changing economic circumstances regarding interest rates which have caused investors confidence in entering into crypto markets rather than any banking crisis occurring recently..