- Bitcoin (BTC) and Ethereum (ETH) prices rose about 2%, respectively, as stocks fell.
- The S&P 500 was down 1.5% as two bank stocks declined.
- BTC and ETH’s gains saw altcoins among the top 10 cryptocurrencies by market cap up.
bitcoin (btc) On Tuesday, the price moved above $28,500 again, gaining more than 2% in morning trade during the US trading session. The upside was another attempt by the Bitcoin bulls to establish a fresh base in the key price range.
elsewhere, the cost of Ethereum (ETH) The crypto rallied above $1,860 to scale a new 24-hour high as the spot market climbed. Ether token was up 1.9% at the time of writing, appearing in the top 10 cryptocurrencies by market cap list.
BTC and ETH traded at year-to-date highs above $31,000 and $2,100, respectively.
Stock tanks on bank scare
US stocks opened with a decline on Tuesday stock prices The other two US banks plunged amid the latest turmoil in the banking sector. The S&P 500 was down 1.5% while the Nasdaq was shedding 1.3%.
Shares of PacWest (PACW) and Western Alliance (WAL) saw a sharp decline on Tuesday, following a slide in First Republic Bank’s share prices in the lead-up to its acquisition by JP Morgan.
As of 12:30 ET, PACW and WAL share prices were down 26% and 20%, respectively.
The two bank stocks were down more than 30% on investor concerns about unrest within the US banking system following losses following the collapse of the Silicon Valley bank.
Also on the minds of investors is the Fed meeting this week which started on Tuesday. While the market anticipates an interest rate hike of 25 basis points after the FMC meeting, what the central bank says next is considered crucial.
Economist Mohamed A. El-Arian commented on the market outlook stating through a do,
,The volatility continues, this time with the yield on 2-year Treasuries falling by 20 bps. With such a major market segment in urgent need of stabilization, it remains to be seen whether the Fed acts tomorrow or, instead, is again a source of volatility.,
Barry Knapp of Ironsides Macroeconomics says the Fed’s outlook on the inflation question is worrisome and suspect. The central bank has to consider what the market is telling it. He shared his thoughts in an interview with CNBC’s Squawk Box.
“The full 2% target is a complete trap,” says @barryknapp on the Fed’s inflation target. “Trying to do the math on what’s going to happen to credit and what that will mean for economic activity and inflation is a really bleak, dubious approach.” pic.twitter.com/1HT9cx3ldJ
— Squawk Box (@SquawkCNBC) May 2, 2023