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Bitcoin surpasses $30K after 10 months following a change in the Fed's perspective

Bitcoin surged on Tuesday, crossing the $30,000 mark for the first time in 10 months, driven by the prospect of a less hawkish Federal Reserve in the coming months and easing fears of a banking crisis. The world's largest cryptocurrency gained 6.3% to hit $30,061.0 at 01:23 ET (05:23 GMT).

Bitcoin's rise led gains across other cryptocurrencies, with Ethereum up by 3.3%, while Binance Coin and Ripple added 4.6% and 2.3% respectively. This surge in Bitcoin also pushed the total crypto market capitalization to $1.4 trillion.

Bitcoin's latest rally is a part of a broader improvement in sentiment, as markets began pricing in the possibility of a limited number of interest rate hikes by the Federal Reserve in the coming months. While the Fed is likely to raise interest rates at least once more, the markets indicate that they are positioning themselves for an eventual pause, or even reversal, in the Fed's hawkish stance. A less hawkish Fed is good news for Bitcoin and other cryptocurrencies, as a sharp rise in interest rates wiped out over two-thirds of the total crypto market capitalization in 2022.

Investors are focusing on the consumer price index inflation data and the minutes of the Federal Reserve's March meeting for more cues on the path of interest rates. Bitcoin has been gaining over the past month, as it attracted some safe-haven plays amid concerns over a broader collapse in the banking system. However, low trading volumes also made for bigger price moves in the token, especially as its slump through 2022 soured investor sentiment towards cryptocurrencies. A string of high-profile scandals and bankruptcies also kept investors wary of cryptocurrencies, while US authorities engaged in a regulatory crusade against the sector.

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