- A crypto rally is going on today, with Bitcoin and altcoins being in the red.
- Bitcoin rose to $72,000x while Pi Network surged by over 30%.
- Crude oil prices continued rising this week, with Iran targeting $200.
A crypto rally is taking place today, with leading altcoins such as Pi Network, River, FET, Render, and Midnight driving the surge. Bitcoin price remains stable above the key resistance level of $71,000, while these top altcoins lead the market.
Stock Market Crash Continued This Week
The current crypto rally stands out amid a stock market crash triggered by the war in Iran. Recent data shows that the Dow Jones Industrial Average plummeted by 740 points on Thursday, while the Nasdaq 100 and S&P 500 indices fell by 405 and 100 points, respectively.
These indices are nearing a correction, which occurs when an asset falls by more than 10% from a local peak. It is then followed by a bear market, when it drops by 20% from a local peak.
READ MORE: IREN Stock Price Targets a Surge to $60 as NVIDIA Invests in Nebius
Stock market prices are tanking because of the ongoing crude oil price surge, with Brent trading at $101. Oil is soaring despite the measures to lower it, including the upcoming release of 400 million barrels from strategic reserves by IEA member countries.
Soaring energy prices are dragging the stock market down due to their impact on inflation and the Federal Reserve. Higher prices lead to inflation, making it harder for the Federal Reserve to slash interest rates.
This time, however, investors are concerned about stagflation, a situation where high inflation is accompanied by slow economic growth. Odds of stagflation rose on Friday when a US report showed that the labor market is struggling, with the economy shedding over 92,000 jobs in February.
The ongoing Ukraine war will also impact key supply chains, as Iran has vowed to keep the Strait of Hormuz closed to most countries.
Why the Crypto Rally is Happening
Meanwhile, the crypto market rally is being driven by several catalysts. First, there are signs of institutional demand for these coins as BlackRock launched the first staked Ethereum exchange-traded fund (ETF) on Thursday.
ETHB is similar to ETHA, with the only difference being that its investors will receive monthly staking income. The two funds have similar fees, with ETHB having a waiver for the first year.
Data shows that American investors are accumulating Bitcoin despite the ongoing war in Iran. Spot Bitcoin ETFs have added over $1.2 billion in assets this month. Before that, these funds had lost assets for 4 consecutive months. That is a sign that some investors see it as a safe-haven asset because of its scarcity.
In other news, Kraken announced that it would list Pi Network today, March 13. This listing is important as it makes it available to American traders, a move that will boost its liquidity. Pi Network token jumped by over 30% today.
READ MORE: Will the Crypto Market Crash or Rally as Iran War Takes a New Turn?
