Bitcoin gains as banking crisis spooks investors

Bitcoin, the largest and most popular cryptocurrency, increased by 5.19 per cent to $28,380 at on Sunday, adding $1,400 to its previous close. 

The price surge comes as Bitcoin continues its bullish trend, having increased by 72 per cent from its yearly low of $16,496 on January 1.

In addition to the recent market recovery, Bitcoin's rise in market dominance can also be attributed to the recent banking crisis that has hit the financial industry. With the closure of three banks in quick succession, the US Federal Reserve has injected over $300 billion into the financial system, while also increasing interest rates by 0.50 per cent, causing concern in the financial sector. In times of crisis, investors tend to seek alternative financial instruments, with Bitcoin being a major beneficiary.

Ether, the coin linked to the Ethereum blockchain network, also saw a surge in its price, rising by 3.58 per cent to $1,827.2 on Sunday, adding $63.1 to its previous close.

Despite the recent bullish trend, the crypto market experienced a slight price correction in the past 24 hours, with several altcoins in the red. The global market cap has decreased by 1.31 per cent during this period to $1.16 trillion, amid concerns that the market could be in for a slight dip.

At the start of the year, BTC held 41 per cent of the total market cap, which has steadily increased in the first three months. Since the beginning of March, BTC has made significant progress, with the token hitting the $27,000 mark earlier in the week. This bullish trend has also been reflected in the market dominance, which is now around 46% at the time of writing.

As the cryptocurrency market continues to evolve, the rise of Bitcoin and other cryptocurrencies will likely be subject to ongoing fluctuations in price and market dominance.