Daily Crypto News

Why Bitcoin, Ethereum, Cardano, and Coinbase Are Soaring Again | The Motley Fool

What happened

The crypto market is having a great day on Tuesday. As of just after 2 p.m. ET, many leading tokens were enjoying serious 24-hour gains. Here’s a sample of a few leading names, but dozens of altcoins posted similar price increases.


Token Market Cap

24-Hour Price Change

Bitcoin (BTC 1.39%)

$500.5 billion


Ethereum (ETH 1.69%)

$212.8 billion


Cardano (ADA -0.86%)

$12.7 billion


Data from Coingecko.com, reflecting 24-hour price changes at 2 p.m. ET, March 14, 2023.

The surging crypto market also lifted many stocks with close ties to the sector. For example, shares of leading crypto-trading exchange Coinbase (COIN 5.88%) rose as much as 11.9% Tuesday before settling back to a 5.9% gain at the close of the trading session.

So what

There are many crypto-related balls in the air right now. Future historians will probably write books about this week in blockchain history. At the very least, you’ll see chapters about it in primers on the early days of crypto investing. This brief news roundup doesn’t aim for that kind of scope. Instead, here are some of Tuesday’s most game-changing highlights — in no particular order:

  • The rash of bank runs and banking meltdowns struck the crypto sector hard last week because numerous crypto exchanges and stablecoins had active business relationships with the failed banks. This week, investors’ fears largely subsided after regulators promised to secure the account balances of the failing banks’ customers.
  • The banking crisis may inspire the Federal Reserve to switch gears in its inflation-fighting efforts. In light of the bank sector’s struggles amid rising benchmark interest rates, the agency could accept higher inflation in exchange for a lower risk of further financial institution meltdowns. The Federal Open Market Committee’s next rate-setting meeting is scheduled for March 22. The recent bullish crypto action suggests that many traders now expect a smaller interest rate bump than before, or maybe even no rate hike at all this time. Lower interest rates would be good news for the crypto market’s supporting cast, and also for the digital currencies themselves.
  • Tuesday morning’s Consumer Price Index report was in line with expectations, showing that inflation cooled down mildly in February. That’s another data point that could lead to lower inflation-thwarting interest rate hikes, next week and beyond.

Now what

Tuesday’s jumps added to the momentum these cryptocurrencies built up over the weekend. Cardano has gained 17% in two days, Ethereum rose 18% over the same period, and Bitcoin is up by 23%.

This is not a full recovery from the pains of 2022. Ethereum is trading at prices last seen last August and Bitcoin’s bounce has brought it back to levels it previously slid below in June. Coinbase and Cardano, by contrast, have only gotten back to last week’s price levels.

All of these tokens have a long way to go before they could set fresh all-time highs again. The Fed might provide fuel for those fires next week, sending crypto prices skyward by delivering a small interest rate increase or by forgoing one, but it would probably take much more to drive that sort of response. I’m talking about progress toward a firmer regulatory framework for trading and ownership of cryptocurrencies, along with an array of consumer-ready apps and services in the crypto-based financial sector.

These events are not likely to be the spark that lights the crypto market’s moon-bound rockets again. Call it a dress rehearsal for the real surge, or maybe even a head-fake ahead of the next plunge. Always in motion is the crypto future. Stay tuned for further drama, and feel free to make some modest investments in this volatile sector. Just be prepared for a plethora of speed bumps and potholes in the road ahead.

Anders Bylund has positions in Bitcoin, Cardano, Coinbase Global, and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Cardano, Coinbase Global, and Ethereum. The Motley Fool has a disclosure policy.

Read More: Why Bitcoin, Ethereum, Cardano, and Coinbase Are Soaring Again | The Motley Fool

Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. NewsOfBitcoin.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.