Bitcoin is slowly recovering from a 1% dip following a 25 basis point interest rate hike by the U.S. Federal Reserve. The recovery of the cryptocurrency by 1.3% to $29,115 is attributed to the ongoing banking crisis in the U.S. Banrion Capital’s Chief Strategist, Victoria Bills, suggests that the banking crisis is another driving force behind crypto prices, which counterbalances the effect of the Fed’s interest rate hikes. Bills point out that panic and market reactivity in the banking sector could result in more turmoil in regional banks.
JP Morgan sees the current banking crisis in the U.S. as a “vindication for the crypto ecosystem.” According to a report by the investment bank, the crisis has exposed the weaknesses of the traditional financial system, given that banks’ maturity mismatch is susceptible to bank runs. As a result, analysts argue that the crisis is driving more interest in crypto, with panic and market reactivity increasing.
Solana’s MadLads NFT Collection Fails to Boost Transaction Volume
Solana’s MadLads NFT collection managed to “break the internet” with its highly sought-after JPEGs on the blockchain in April. However, the weekly NFT volume of Solana is still lagging behind Ethereum, which is performing well in the NFT market.
Data from CryptoSlam reveals that the number of sales on Solana has decreased by 52.7% over the past week, while the number of transactions is down 16%. Meanwhile, Ethereum’s NFT metrics are up across the board. Data from Nansen indicates that the volume from MadLads has been slowly declining over the last month.
In summary, the ongoing banking crisis in the U.S. is boosting interest in Bitcoin as investors seek alternative investment opportunities. JP Morgan suggests that the crisis has exposed the weaknesses of the traditional financial system, making crypto more attractive. Meanwhile, Solana’s MadLads NFT collection failed to sustain interest, with transaction volumes still lagging behind Ethereum’s NFT metrics.
