Despite the failure of three central banks that had adopted crypto-friendly regulations, the price of Bitcoin (BTC) has increased by 27% over the previous week and is now very close to $26,000.
Since key banks with crypto-friendly policies were shut down by US authorities due to a liquidity crisis, the cryptocurrency market, particularly the stablecoin sector, has experienced a lot of volatility. As a result of this abrupt closure, some stablecoins had to find new reserves. Circle, the second-largest stablecoin issuer on the USDC market with $3.3 billion in reserves on the failed bank SVB, has been severely damaged.
Yet, other analysts assert that banking sector strain may limit the rate of Fed rate increases, which may benefit risky assets like equities and bitcoin. That occurs despite the fact that Fed Chairman Jerome Powell warned that interest rates would rise more than policymakers had anticipated only days before the bank collapse.
Bitcoin has increased by 50% this year, based on CNBC. The tech-heavy Nasdaq, in comparison, is up 12% this year and has historically had a close correlation with bitcoin. S&P 500 grew by 2.5 percent.
Of the notable cryptocurrencies, Solana has increased by more over 100% while Ether has increased by 42% this year.
At times of market turbulence, investors are said to swarm to gold, which is up slightly over 3% this year.
A crucial weekly barrier is between $26,500 and $27,000, based to the price chart. The decline will terminate in a big downtrend for BTC if the weekly candle is produced above this level, and the uptrend cycle may resume.
Also, the market's renewed excitement as a series of anticipated events approach may contribute to the upward momentum.
Ethereum developers revealed yesterday that the Shanghai Upgrade would be live on April 12. One of Ethereum's most important updates, it signals the potential withdrawal of staked ETH.
Also, on March 22, 2023, Space ID (ID), the 30th project to be launched by Binance Launchpad, will go live. Users' BNB balances will be recorded for 5 days starting on March 17, 2023, and ending on March 22, 2023, in accordance with the usual Launchpad subscription format.
The March 23 airdrop of the ARB token from Arbitrum is likewise widely anticipated by the cryptocurrency world. The token is intended to give the Arbitrum network DAO governance. With over 10,000 tweets, the event attracted a lot of attention and rose to the sixth trending topic on Twitter in the US.