Ethereum surged to $1,820 and then slightly corrected. Bitcoin maintained its new high of $28,000 after it went bullish.
Ether’s value against bitcoin had decreased since March 12, when the TradFi scene started facing a crisis. Any specific event has not triggered the sudden surge of ETH.
The ratio rose from 0.072 bitcoin per ETH to 0.062, equivalent to $280. It changed to 0.064 today, which might be the beginning of a recovery phase.
The Ethereum token supply has decreased by almost 67,000 ETHs, equivalent to $122 million, for the first time since its launch in 2015. ETH went into deflation on Jan. 16, 2023, and its total supply has steadily declined by 1,000 to 2,000 per day. More than 2,100 ETH are getting burnt daily. However, around 2,000 are issued to perchers, making the supply deficit around 100 ETH.
So far, bitcoin has been the primary crypto asset for market speculators and investors running out of banking. Bitcoin’s high position might be because it is the most acknowledged crypto asset integrated into the general financial system.
The ETH surge might suggest a calmness in the banking system, but no solid evidence exists. However, with the ongoing government intervention, the banking crisis might end, and there is hope for improved market sentiment.
The placating of the banking crisis
Significant banks on the verge of collapsing have made incredible recoveries while the federal government and FDIC intervened for the ones that have been crushed completely.
As industry proponents speculated a possible crash, the First Republic Bank stock dived by 50% on Monday. However, with $212 billion in total assets as of December 2022, the bank bounced back today, with the price increasing by an average of 30%.
Treasury Secretary Janet Yellen said the government might offer catchers to all banks speculating about a potential system contagion.
Intervention by big banks such as the ECB, J.P. Morgan, and the Bank of England might save the banking scene and suggest that the crisis is ending. The falling behind of the bank collapse scene might make the Bitcoin price rise to slow down too.