The ethereum (ETH) price has risen massively, from $1,760 to $1,820 on March 21, as bitcoin (BTC) holds steady after a surge in recent days.
Ethereum rose to $1,820 and then corrected slightly. Bitcoin held its new high of $28,000 after it turned bullish.
Ether’s value against bitcoin had declined since March 12, when the TradFi scene began to face a crisis. No specific event has triggered the ETH surge.
The ratio increased from 0.072 bitcoin per ETH to 0.062, equivalent to $280. It changed to 0.064 today, which could be the start of a recovery phase.
The supply of Ethereum tokens has decreased by almost 67,000 ETH, which is equivalent to USD 122 million, for the first time since its launch in 2015. ETH went into deflation on January 16, 2023 and its total supply has steadily decreased between 1,000 and 2000 per day. . More than 2,100 ETH are burned daily. However, around 2,000 are issued to racks, making the supply shortfall around 100 ETH.
Until now, bitcoin has been the main crypto asset for market speculators and investors going bankrupt. Bitcoin’s high position could be due to its being the most recognized crypto asset integrated into the mainstream financial system.
The rise of ETH could suggest a calm in the banking system, but there is no solid evidence. However, with ongoing government intervention, the banking crisis could end and there is hope that market sentiment will improve.
The appeasement of the banking crisis
Major banks on the brink of collapse have made incredible recoveries, while the federal government and the FDIC stepped in for those that had been completely crushed.
As industry advocates speculated a possible crash, shares of First Republic Bank plunged 50% on Monday. However, with $212 billion in total assets as of December 2022the bank rallied today, with the price rising by an average of 30%.
Treasury Secretary Janet Yellen said the government could offer receivers to all banks that speculate on possible contagion from the system.
The intervention of big banks like the ECB, JP Morgan and the Bank of England could save the banking scene and suggest that the crisis is ending. The delay to the scene of the banking collapse could cause the price of Bitcoin to slow down as well.
