The worldwide market for digital currencies has halted its previous decline and has made progress, with Bitcoin and Ethereum leading the way.
Bitcoin, which is among the most valuable cryptocurrency globally, rose above $25k on Friday morning, while Ethereum received offers at around $1,700. Other widely-used alt cryptos, such as Ripple, Dogecoin, Solana, and Litecoin, also increased in value.
Recently, Bitcoin’s value has risen by over 5% and is now traded above $25k. This upsurge, together with other digital currencies, has caused the overall crypto market to exceed $1 trillion, thereby boosting investors' confidence.
Despite this, some experts are still doubtful and express the indication of a bull trap propelled by positive emotions, primarily because trading volumes remain low. The recent failure of Silvergate banks and SVB has generated worries about fund availability in the market, causing customers to divert their attention toward digital assets. As per Apptopia, downloads of crypto applications have risen by around 15% after the fall of significant bank stocks.
The objective of introducing a cryptocurrency to rectify the flaws of the traditional financial system has gained traction as investors are striving to expand their portfolios and minimize risks.
$BTC Price: $25,737 #Bitcoin #BTC #BitcoinPrice #Crypto pic.twitter.com/NBFMnpXaBH— Bitcoin Price Tracker (@BTCPriceUpdate) March 17, 2023
There is an anticipation that Ethereum, which is currently the second most valuable crypto by market cap, will achieve its highest-ever value of around $2k. The recent ETH price increase has been primarily fueled by the implementation of Ethereum's blockchain technology in non-fungible tokens (NFTs) and decentralized finance (DeFi).
Swiss National Bank Rescues Credit Suisse, but Uncertainty Remains
Credit Suisse, an insolvent investment bank, has been loaned $50 billion by the Swiss National Bank to avoid the dire consequences of a potential European banking crisis. However, despite this measure, uncertainty lingers due to the impact of the COVID-19 pandemic and geopolitical tensions on the global economy.
⚠️BREAKING:— Investing.com (@Investingcom) March 16, 2023
*CREDIT SUISSE TO BORROW ABOUT $54 BILLION FROM SWISS NATIONAL BANK TO SHORE UP LIQUIDITY$CS 🇨🇭🇨🇭 pic.twitter.com/pMuX1fdaow
The news of the Swiss National Bank lending $50 billion to Credit Suisse did not significantly affect the prices of Bitcoin (BTC).
Cryptocurrency Market Sees Bullish Run as Bitcoin Dominance Continues
At present, the cryptocurrency market is witnessing a rise in worth, with Bitcoin and Ethereum at the forefront. Investors continue to hold a positive outlook on the potential of cryptocurrencies to challenge conventional banking establishments.
The fact that the overall market value of cryptocurrencies has exceeded $1 trillion indicates that investors are becoming more intrigued by the possibilities of cryptocurrencies.
#CMC Daily Chronicles ✨— CoinMarketCap (@CoinMarketCap) March 17, 2023
It's finally Friday!
Let's see if we can maintain Total Market Cap above 1T over the weekend! #CoinMarketCap #CMC #crypto #cryptocurrency pic.twitter.com/JNF7dazSft
It remains to be seen how the cryptocurrency market will fare in the forthcoming months, particularly in light of the market's apprehensions about liquidity and potential reductions in interest rates.
It is noteworthy that the US may reduce interest rates towards the end of the year to safeguard banks.
Bearish US Dollar Underpins BTC
Bitcoin (BTC) and Ethereum (ETH) have been significantly affected by the recent depreciation of the US dollar, which occurred as banks and authorities took measures to alleviate the strain on the financial system in response to the failure of two medium-sized banks.
Consequently, most leading currencies, such as BTC and ETH, have rebounded and are presently traded beyond the $25k and $1,700 mark, respectively. This optimistic trajectory is predicted to persist as investors look for alternative investment opportunities in response to the diminishing value of the dollar.
The upcoming Federal Reserve monetary policy meeting is also expected to influence the market's fluctuations substantially. Confident investors are optimistic that the Fed may adopt a more cautious approach with its rate increases, which could further alleviate the pressure on the financial sector and stimulate greater interest in cryptocurrencies.
All in all, the decline of the US dollar has been a significant driving force behind the surge in the prices of BTC and ETH. As the global market seeks new investment prospects, cryptocurrencies are becoming sought after, and this trend is predicted to endure as the financial system continues to confront persistent challenges.
Following a period of stabilization around the $26,500 mark, the value of Bitcoin experienced a sharp decrease and has been on a short-term downward trajectory after falling beneath the support thresholds of approximately $25,000 and $25,500.
In the event that the value manages to reach and hold above $25,200, it could initiate a fresh upward trend above the $26k mark, where a critical resistance level lies at the $26,500 mark. Surpassing the $26k threshold could clear the path for a rise toward $27,500.
Bitcoin Price Chart - Source: Tradingview
The inability of Bitcoin to surpass the $25,200 resistance level may result in another drop in its value. At present, the $24k level is providing support for the short term, while the $23,500 area and the 100-hourly simple moving average are providing more substantial support.
Nevertheless, if Bitcoin's value drops below $22,600, it may result in more selling pressure, and if this selling continues, the price may drop below $22k.
After breaking through the $1,600 level, Ethereum's price rose considerably. However, to attain a positive zone comparable to Bitcoin, ETH had to surpass the critical barrier zone of $1,700.
Eventually, the price surpassed the $1,745 barrier and was heading toward $1,800. It peaked near $1,784 before experiencing a pullback into negative territory.
Ethereum Price Chart - Source: Tradingview
If Ethereum cannot surpass the $1,745 level, it can result in another price reduction. Shortly, the trend line and the $1,695 price level are expected to act as initial support for the market.