Bitcoin takes a breather as Ethereum continues to rise and surpasses $2,100

"Cryptos are losing some appeal as banking turmoil risks appear to be disappearing,. ed lending to banks continues to ease and earnings have not revealed any major strains with the early banks that have reported," explained Edward Moya, senior analyst at Oanda.

It is worth noting that at the end of last week, some of the largest US banks such as JP Morgan, Wells Fargo and Citi reported that the first quarter of the year closed with a significant rebound in profit.

"The banking situation is distinct from 2008 as it has involved far fewer financial players and fewer issues that need to be resolved, but financial conditions will likely tighten as lenders become more conservative, and we do not know if this will slow consumer spending," stated Jamie Dimon, chairman and CEO of JP Morgan.

Related to this, on Monday US Treasury Secretary Janet Yellen acknowledged that banks are likely to become more cautious and tighten credit further in the wake of recent bank failures, possibly negating the need for further Federal Reserve (Fed) interest rate hikes. Traditionally, a less hawkish Fed has boosted the price of cryptoassets.

Likewise, the New York firm's expert stressed that rising US Treasury bond yields are "dampening" the appeal of Bitcoin and other risk assets. At the moment, the yield on the 10-year US bond climbs above 3.6%.

On the other side of the scale, Ethereum continues to rise driven by the completion of the Shanghai upgrade. According to Sean Farrell, head of digital asset strategy at FundStrat, "the market's pessimism regarding Ethereum staking withdrawals proved excessive." Likewise, he and other experts predict further rallies in the market's largest altcoin as there appears to be growing institutional interest in staked ETH.

In other market news, there have been gains for almost all the major tokens. There have also been losses of 1% for Solana (SOL).