Cryptocurrency Bitcoin has reached a 10-month high following the worst banking turmoil since the 2008 global financial crash and is now worth more than $30,000.

One Bitcoin was worth $30,438 in Asian trading on Tuesday, a high not seen since June last year – but still less than half the all-time high value of more than $67,000 in November 2021.

The value of the major cryptocurrency has recovered from the hits it took late last year as one of the world’s largest cryptocurrency exchanges, FTX, went bankrupt and its founder Sam Bankman-Fried was charged with fraud.

The leading cryptocurrency had been steadily increasing in value since March and tipped the $30,000 threshold amid expectations the US central bank, known as the Fed, will halt its interest rates increases, thereby maintaining borrowing costs as opposed to making lending more expensive.

Please use Chrome browser for a more accessible video player

The Fed had been increasing interest rates in an effort to bring stubbornly high inflation down.

However, market expectations now are that the Fed is unlikely to raise interest rates much higher for longer as it seeks to minimise stress on the banking sector.

More than a quarter of economic forecasters (28.6%) expect there will be no increase in the US interest rate next month, while the remaining 71.4% predict a 0.25 percentage points rise.

High interest rates posed problems for banks and was one of the factors behind the collapse of Silicon Valley Bank and the associated worst banking turmoil since the 2008 global financial crash. US lenders Signature Bank and Silvergate Bank collapsed, and Switzerland’s second largest lender Credit Suisse were forcibly taken over by Swiss rival UBS.

However, high interest rates also help banks’ profitability. NatWest, for example, had profits boosted to the highest level since before the global financial crash as money earned on loans, minus the amount it pays in interest, increased.

Read more business news:
UK to see return of ultra-low interest rates, IMF says
CBI boss sacked over ‘conduct at work’

Be the first to get Breaking News

Install the Sky News app for free

Bitcoin value had been rising since the FTX collapse but particularly gained strength over March following the collapse of three US banks.

The turmoil gave new credence to the belief among Bitcoin fans that cryptocurrency is a more attractive alternative to traditional finance.

Related posts:

New vaccine has in-built ‘insurance’ against coronavirus mutations Fake Amazon reviews being sold ‘in bulk’ for £5 each online Children can report nude photos of themselves online via new tool Safe landing for Jeff Bezos and crew as billionaire achieves childhood dream of becoming astronaut ‘Revolutionary’ protein database could change how diseases like COVID, dementia and cancer are treated Hacker offers to sell Shanghai police database holding details on one billion Chinese residents Apple reveals new iPads and updated Apple TV Why you really need to make sure you get a good night’s sleep How the Black Death shaped how our bodies tackle today’s diseases Violent protests at world’s biggest Apple iPhone factory Bird flu victim had virus with mutations that made it better adapted to human cells The sun is ‘waking up’ – here’s why and what you need to know