The global cryptocurrency market has managed to stop its previous losing streak and consolidate somewhat, with Bitcoin and Ethereum leading the way. Bitcoin, the world’s oldest and most valued cryptocurrency, climbed above the $25,000 mark early Friday morning, while Ethereum attracted bids around the $1,700 level.
Other popular altcoins, including Dogecoin, Ripple, Litecoin and Solana, also landed in the green.
The price of Bitcoin has increased by more than 5% in the last 24 hours and is currently trading above $25,600. This rise, along with other cryptocurrencies, has pushed the total market capitalization of cryptocurrencies past the $1 trillion mark, giving investors more confidence.
Even so, some analysts are skeptical and believe this could be a bull trap fueled by positive sentiment, especially as trading volume remains low.
The recent collapse of SVB and Silvergate banks has increased liquidity concerns in the market, forcing clients to shift their focus to digital assets. According to Apptopia, cryptocurrency app downloads are up 15% following the collapse of major bank stocks.
Investors seek to diversify their portfolios and reduce risks, which has drawn attention to the goal of introducing cryptocurrency to address the shortcomings of the old financial system.
As for Ethereum, which is currently the second largest cryptocurrency by market capitalization, it is expected to reach an all-time high of $2,000. The current growth in the price of ETH is mainly driven by the use of Ethereum’s blockchain technology in decentralized finance (DeFi) and non-fungible tokens (NFT).
In addition, the upcoming Ethereum Improvement Proposal (EIP) 1559 update, scheduled for July 2021, is expected to limit the supply of Ethereum and could cause a supply crunch, potentially pushing its price even higher.
Swiss National Bank bails out Credit Suisse, but uncertainty remains
The Swiss National Bank lends $50 billion to insolvent investment bank Credit Suisse. The measure seems to have spared the horrors of the European banking crisis so far. However, uncertainty remains as the COVID-19 outbreak and geopolitical tensions continue to affect the global economy.
Therefore, this news of the Swiss National Bank’s $50 billion loan to Credit Suisse did not have a significant impact on Bitcoin (BTC) prices.
The cryptocurrency market is seeing growth as Bitcoin’s dominance continues
The cryptocurrency market is currently experiencing an increase in value, led by Bitcoin and Ethereum. Investors remain optimistic about the potential of cryptocurrencies to disrupt traditional banking institutions.
As the total market capitalization of cryptocurrencies surpasses the $1 trillion mark, it is evident that investors are increasingly interested in cryptocurrencies and their potential.
It will be interesting to see how the cryptocurrency market behaves in the coming months, given the market’s concerns about liquidity and a potential cut in interest rates.
It is important to note that the US may cut interest rates in the second part of the year to provide protection to banks. This action could encourage investors to create new long-term positions and increase the inflow of capital into riskier assets.
Bearish US dollar supports BTC
The recent decline in the US dollar has had a significant impact on the prices of Bitcoin (BTC) and Ethereum (ETH). The decline came after authorities and banks took steps to reduce pressure on the financial system following the collapse of two medium-sized banks.
As a result, most major currencies, including BTC and ETH, have recovered and are currently trading above the $25,000 and $1,700 levels, respectively. This upward trend is expected to continue as investors seek alternative investments amid a weakening dollar.
The upcoming Federal Reserve monetary policy meeting is also expected to play a significant role in market movements. Some investors hope the Fed could take a more cautious approach with its rate hikes, which could further ease stress in the financial sector and potentially spur more interest in cryptocurrencies.
Overall, the decline in the US dollar was a key factor in the increase in BTC and ETH prices. As the world looks for new investment opportunities, cryptocurrencies are becoming an increasingly popular choice, and this trend is expected to continue as the financial system faces ongoing challenges.
The price of Bitcoin
After a brief consolidation at $26,500, Bitcoin price fell sharply and has been in a short-term downtrend since breaking below the $25,000 and $25,500 support levels.
However, if the price can close above $25,200, it could initiate a new uptrend above $26,000, with a key resistance level in the $26,500 zone.
A break of the $26,000 level could pave the way for a potential rally towards $27,500.
Bitcoin could experience another decline if it fails to break the $25,200 resistance level.
Currently, the $24,000 level provides near-term support, with additional and stronger support in the $23,500 area and the 100-hour simple moving average not far behind.
However, if the price falls below $22,600, selling pressure is likely to increase, and if losses continue, the price could fall below $22,000.
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After Ethereum broke through the $1,600 mark, its price started to rise significantly. However, to reach a positive zone comparable to Bitcoin, ETH had to break through the key barrier zone of $1,700.
Finally, the price broke through the barrier of $1745 and traded towards $1800. The price peaked near $1784 before experiencing a return to the negative.
If Ethereum fails to break the $1,745 level, we could witness another drop in its price. In the short term, the trend line and price of $1,695 is likely to serve as early support for the market.
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Top 15 Cryptocurrencies to Watch in 2023
Check out Cryptonews’ Industry Talk team carefully curated list of the top 15 altcoins to watch out for in 2023. The list is regularly updated with new ICO projects and altcoins, so check back often for the latest updates.
Disclaimer: The Industry Talk section contains insights from players in the crypto industry and is not part of the editorial content of Cryptonews.com.
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