Bitcoin (BTC) soared to highs not seen since June 2022 on Tuesday afternoon, breaking above US$26,000 and nearly hitting US$26,500.

Evidence that US inflation may actually be getting under control fed into the intraday rally, though the BTC/USDT was already running hot against a hobbled US dollar and was also in recovery mode after the drama surrounding Silicon Valley Bank and USD Coin de-pegging.

BTC/USDT entered a fairly quick correction, but not before up to US$100mln in bitcoin shorts got liquidated out of the market.

At the time of writing, the pair was changing in the upper ranges of the 24k-25k channel, with the Binance order book displaying selling pressure at US$25,000 and buying support at US$24,700.

Bitcoin (BTC) briefly touches June 2022 levels – Source: currency.com

Data shows that exchange-traded bitcoin volumes are exceptionally high – the highest since early November 2022 in fact – which typically encourages excitable price action … one way or the other.

Bitcoin (BTC) volumes heat up – Source: blockchain.com

Data also shows that inflows on the centralised exchanges are running high – this is often perceived as a bearish signal as it suggests pending selling pressure.

In terms of macro pressures, UK chancellor Jeremy Hunt is announcing his budget today. 

Tax cuts are more or less off the menu, despite pleas from UK businesses, but on the plus side, the pressure to reduce interest rate hikes has heated up amid the semi-crisis in the financial sector.

Lower rates ultimately mean more risk appetite among traders, which ultimately means it’s good for crypto, but it is debatable how much the world’s sixth-largest economy can really push the needle.

Next Wednesday’s high-stakes interest rate decision from the US Federal Reserve, on the other hand, will be hotly anticipated. The Fed is expected to go lighter on interest rates too, which could galvanise the bulls.

Ethereum (ETH) peaked at an intraday Tuesday high of US$1,780 before facing a reversal. Not quite bitcoin’s June highs, but managing to cause a US$49mln headache for ETH longs regardless.

ETH/USDT was changing hands a few dollars below the persistently strong US$1,700 resistance point at the time of writing.

Altcoins toe the line

Few surprises among the top-20 altcoin set, with the likes of Cardano (ADA), Polygon (MATIC), Solana (SOL) and BNB all managing to sustain high-single-digit weekly gains.

Polkadot (DOT) has pulled ahead slightly, adding 11% week on week, while Tron (TRX) is underperforming the market, having added less than 1.5%.

SingularityNET’s AGIX token topped the charts by adding 42% overnight and 35% week-on-week.

AGIX has skyrocketed this year, increasing its market value by 1,000% to US$652mln. However, one wonders if, as the token of an artificial intelligence marketplace, it is simply riding the ChatGPT hype train.

Global cryptocurrency market capitalisation currently stands at US$1.1tn, having added 2.3% overnight, while total value locked in the decentralised finance (DeFi) space added 1.3% to US$48bn.