Ethereum rose above $1,820 before a minor correction. After a bullish turn, Bitcoin held its recent high of $28,000.
Ether’s value against Bitcoin had fallen since March 12, when the TradFi environment began to deteriorate. Any one event did not cause an unexpected increase in ETH.
The ratio increased from 0.072 Bitcoin per ETH to 0.062, or $280. It moved to 0.064 today, which might signal the start of a recovery phase.
For the first time since its inception in 2015, the Ethereum token supply has declined by about 67,000 ETHs, or $122 million. On January 16, 2023, ETH started deflation, and its total supply has slowly fallen by 1,000 to 2,000 per day. Every day, almost 2,100 ETH are burned. Yet, around 2,000 are distributed to perchers, resulting in a supply shortage of approximately 100 ETH.
Until now, Bitcoin has been the main cryptocurrency asset used by investors and market speculators who are avoiding banks. Bitcoin’s high ranking may be because it is the crypto asset most widely used in the overall financial system.
Although no concrete proof exists, the rise in ETH may indicate that the banking sector is tranquil. Yet, there is hope for improving the market mood due to the continued government involvement, which may end the financial crisis.
While the federal government and the FDIC intervened in the destroyed banks, big institutions on the verge of failure recovered spectacularly.
First Republic Bank’s stock dropped 50% on Monday as industry allies feared a calamity. Yet, the bank has rebounded today, with the price growing by an average of 30% and total assets of $212 billion as of December 2022.
According to Treasury Secretary Janet Yellen, the government may grant catchers to all banks gambling on a probable system contagion.
The intervention of powerful financial institutions like the ECB, J.P. Morgan, and the Bank of England might preserve the banking industry and signal the end of the crisis. The pace of the bank collapse may slow down, which would also affect the growth in the price of Bitcoin.