The price of small coins like Solana, Axie Infinity and Decentraland has almost doubled. Risk-seeking investors stepped up buying as central banks in several countries are expected to halt rate hikes and cut borrowing costs later this year. However, some experts are skeptical about the continuation of the crypto rally. Jerome Powell, head of the US Federal Reserve, may also indicate that interest rate hikes may continue for a few months. Hedge funds have placed bearish bets on bond futures. This shows that the forecast of the interest rate reaching a higher level may be wrong.
Rick Bensignor of Bensignor Investment Strategies has expressed the possibility of Bitcoin rising to $25,000. He had reached this level at the beginning of August last year. Bitcoin started trading on Monday down around one percent. Its price was around $23,640. Ether, the second largest cryptocurrency by market value, was priced at around $1,635.
The bankruptcy of one of the major cryptocurrency exchanges, FTX, late last year had a huge impact on the market. Because of this, a large number of investors had distanced themselves from cryptocurrencies. Customer funds were used by modifying FTX’s software. The exchange’s chief engineer changed the code to allow Alameda Research, the firm of FTX founder Sam Bankman Fried, to sell its assets even if it had a loss on the money it borrowed. This exemption allowed the company to borrow funds from FTX regardless of the value of the collateral. This code change was detected by the US Securities and Exchange Commission (SEC). The SEC reported that Alameda Research was receiving unlimited credit. The company had received billions of dollars in loans over two years.
Cryptocurrency prices on Indian exchanges
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