The number of individuals holding more than one bitcoin rose to new heights on Sunday as investors remain skittish on bank sector stability
The number of individuals holding select amounts of bitcoin rose to new heights on Sunday as the broader traditional market continues to digest an easing of US Federal Reserve fund rates.
Buying pressure remains resilient despite fluctuations and recent market volatility. Of the total addresses currently holding bitcoin, 70% or roughly 31.96 million addresses are now in profit, IntoTheBlock data shows.
US equities finished positive on Friday following a volatile week of trading which saw the Fed raise rates by a further 25 basis points, putting to rest investor fears of steeper rate hikes.
Inflation remains a primary concern for the central bank, despite recent bank failures, including the collapse of Silicon Valley Bank earlier this month. The Fed is now attempting to walk a tightrope between persistent inflation and triggering a nationwide recession.
On Thursday, Treasury Secretary Janet Yellen said the US government is prepared to take further action to shore up the banking sector, providing a temporary reprieve to heightened uncertainty.
That has so far had little impact on investor sentiment, as money market funds offered by the likes of Goldman Sachs, JPMorgan Chase & Co. and Fidelity have surged by more than $286 billion over the past two weeks.
Investors are likely to remain skittish regarding the safety of bank deposits as they seek out alternatives, Singapore-based crypto financial services firm Matrixport said in its latest report.
“This flight to quality…will likely continue, so we have to be careful that the US bank run might not have run its course,” it said.
The US regional bank index will likely serve as an indicator of the severity of the stress in the system, which could see further allocation to digital assets as a risk hedge, Matrixport said.
Major stock market indexes clocked a winning week, with the Dow Jones average rising 1.2%, the S&P 500 gaining 1.4% and the Nasdaq Composite finishing up 1.7% higher.