- Bitcoin retested the $25,000 area, while the S&P 500 was up nearly 1% after falling on news of an ECB interest rate hike.
- The ECB surprised by increasing the rate by 50 basis points on Thursday.
- There are reports that JPMorgan and Morgan Stanley are looking to help accelerate shares of First Republic Bank.
Bitcoin Shares recovered slightly after falling as investors reacted to the European Central Bank’s (ECB) latest monetary policy news.
On Thursday, markets were digesting recent events around US banks and the potential impact of the Federal Reserve’s next rate hike move when the ECB surprisingly announced an interest rate hike of 50 basis points. Crypto analyst Michael van de Poppe suggested that the Fed could follow suit at its meeting next week.
Breaking:
ECB hiked interest rates by 50 basis points.
This gives an indication that there is no pivot on the horizon and it is likely that Powell will continue with his policy by raising 25bps/50bps next week.
The markets are correcting.
— Michael van de Poppe (@CryptoMichNL) March 16, 2023
S&P 500, Bitcoin recover after ECB news
The S&P 500 edged marginally higher on a resurgence in regional bank stocks.
Despite trading down 0.7% at one point, the benchmark index was up 1% at 12:20 p.m. ET, while the Dow Jones Industrial Average, which initially fell more than 300 points, reversed course and was up just over 100 points. Was getting profit with. or 0.3% more. Elsewhere, the Nasdaq Composite was up 1.5%.
While US stocks rebounded higher amid reports that banking giants JP Morgan and Morgan Stanley were coming to the aid of embattled lender First Republic Bank, concerns remain and investors remain cautious.
Bitcoin flirted with resistance near $25,000 on Thursday as the cryptocurrency continued to track events surrounding the stock market.
The flagship cryptocurrency, which traded lower earlier in the day amid a broader market slide, showed it is still highly correlated with equities despite last week’s spike, which some observers suggested was a growing decorum.
In fact, as CoinJournal analyst Dan Ashmore argues in our Detailed analysis Published today, Bitcoin may finally be separated from other risk assets. However, this is an approach that is mostly not applicable to the current trading landscape, in which the two assets are largely in lockstep.