• The crypto market was largely unaffected by the European Central Bank’s (ECB) 50 basis point rate hike.
• The flagship cryptocurrency Bitcoin saw a slight sell-off after briefly breaking $25,000 and was trading at $24,752.58 as of press time.
• Traditional stock markets saw most stocks rebound after opening losses following the rate hike, but long-term sentiment points to future pains in light of recent banking collapses in both Europe and the US.
Crypto Market Unaffected by ECB Rate Hike
The crypto market has largely been unaffected by the European Central Bank’s (ECB) decision to hike rates by 50 basis points. The flagship cryptocurrency Bitcoin only experienced a minor dip following the announcement and was trading at $24,752.58 as of press time.
Traditional Stock Markets See Rebound
Traditional stock markets saw most stocks rebound after opening losses following the rate hike. However, long-term sentiment points to future pains as markets were hoping for leniency from the central bank amid the turmoil of prior days. Banking stocks saw their worst day on March 15 since Feb 24th 2022 when Credit Suisse’s troubles caused its stock to fall 24%. The overall sector was down 7%.
Swiss National Bank Intervenes
The shares have since recovered after the Swiss National Bank announced a $54 billion loan for the ailing lender on March 16 – a few hours before the rate hike. It is unclear whether this lifeline will be enough for them to survive long-term; some analysts predict they may need another loan within one year.
US Banking Collapse Reignites Crypto Debate
Meanwhile, on the other side of pond U.S regulators are still dealing with two banks collapsing within a week – reigniting debate around why we need Bitcoin in order to protect our finances from bank failures and bailouts that can come with traditional banking systems.
In conclusion, despite some minor fluctuations in price following news of an ECB rate hike, cryptocurrencies remain relatively unaffected and have shown no signs of contagion from traditional financial markets’ turmoil over past couple weeks – continuing their steady testing of resistance levels above $25k following last weeks climb of more than 15%.